Bitcoin Cash Analysis: Can The Bulls Overcome $500?
- Bitcoin cash price rallied above the $440 and $450 resistance levels against the US Dollar.
- The price traded as high as $487 and it is currently consolidating gains.
- There is a key rising channel forming with support near $460 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could continue to rise above $485 and $490 in the coming sessions.
Bitcoin cash price is trading in a strong uptrend above the $450 level against the US Dollar. BCH/USD must stay above $450 to continue higher towards $500 or $520.
Bitcoin Cash Price Analysis
This week, bitcoin cash price remained in a strong uptrend above the $400 pivot level against the US Dollar. BCH price rallied above the $440 and $450 resistance levels to move further into a positive zone.
Besides, there was a close above the $450 level and the 55 simple moving average (4-hours). Finally, the price climbed above the $480 level and traded to a new 2020 high at $487.
Recently, it started consolidating gains and corrected below the 480 level. It broke the 23.6% Fib retracement level of the upward move from the $434 low to $487 high.
However, there is a strong support forming on the downside near the $460 level. More importantly, there is a key rising channel forming with support near $460 on the 4-hours chart of the BCH/USD pair.
The channel support is also close to the 50% Fib retracement level of the upward move from the $434 low to $487 high. Therefore, the price is likely to remain supported above $460. Below the channel support, the next support is near the $450 level.
The 55 simple moving average (4-hours) is also near the $450 level to provide support. Any further losses may perhaps lead the price towards the $420 support.
On the upside, the $480 and $485 levels are initial hurdles. A clear break above the $485 level is needed for a push towards the key $500 handle in the near term.
Looking at the chart, bitcoin cash price is clearly trading nicely above the $460 and $450 support levels. Therefore, there are high chances of more upsides above the $485 and $500 levels as long as there is no close below the $450 level.
4 hours MACD – The MACD for BCH/USD is currently losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is correcting lower below the 60 level.
Key Support Levels – $460 and $450.
Key Resistance Levels – $485 and $500.
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