Bitcoin Cash (BCH) Is on the Move to Retest Higher Resistances
Bitcoin Cash has successfully broken through its immediate resistance and moving average of 50 days. The successful breach of its resistance without retracing or slowing down indicates this cryptocurrency’s strength and buying sentiment. When it comes to a cryptocurrency with the name Bitcoin, there are a lot of them. In fact, what makes BCH unique is overcoming the failures or issues with Bitcoin.
On the one hand, BCH makes it easier to complete a transaction in a smaller time frame and lesser gas fees and transaction expenses. At present, it is consolidating and more likely to give an uptrend breakout. Technical indicators are showing signs of some downside.
Bitcoin Cash Price Analysis
Bitcoin Cash is a popular investment asset for those who missed out on Bitcoin since it carries a similar trajectory. On daily charts, we are witnessing the development of strong resistances every time the prices move up or down by 40%. This essentially creates a zone for buyers and sellers.
At present, we are close to the breakout levels, and there is a strong possibility of a new uptrend rally to begin anytime from $550 to $600 levels. Until that happens, chances are BCH will remain in a narrow consolidation zone. For bullish sentiment to return, it needs to cross $642.
On an indicative basis, MACD is nearing the end of its positive swing, and we are likely to witness some profit booking induced selling in Bitcoin Cash before the start of another swing. Staying above $442 will carry the chances of breaking the $632 resistance.
However, failure to take support from the previous swing low can add additional selling pressure on this cryptocurrency. On the other hand, RSI is quite strong since it has remained close to overbought zones with very small retracements. Back-to-back green candles carry the risk of unmitigated sell-off. While new positions carry a possibility of sustainability.
Bitcoin Cash is clearly in a consolidation even in the hourly charts, and this provides a better insight into the further price action possible on BCH. It seems to have taken support from the lower band of Bollinger bands, but the shrinking size of the band indicates a possibility of breakout in a shorter time frame.
Crossing $560 in this consolidation zone will indicate a big up-move capability as per our Bitcoin Cash forecast. RSI has also started to climb up as BCH takes support. On the downside, we can witness substantial selling pressure if prices retest the $500 levels.