Bitcoin Cash Price Analysis: BCH Faces Strong Resistance At $435
Daily Bitcoin Cash BCH Price Forecast
- The RSI in the daily chart is creeping towards the overbought zone.
- The 4-hour chart shows decreasing price volatility.
On December 24, Bitcoin Cash bounced up from the 50-day SMA and reached $435 on January 3. However, the price has then encountered heavy resistance, which forced the price to retrace eventually. Let’s see what’s going on behind the scenes.
BCH To Drop Soon?
Bitcoin Cash is currently sandwiched between two intense price levels at $435 and $405. However, the relative strength index (RSI) is about to creep into the overbought zone. This shows that the price is about to creep into the overbought zone, triggering a bearish correction.
Image: BCH/USD daily chart
The 4-hour chart also shows us that the market volatility is decreasing, as evidenced by the Bollinger jaw's narrowing. This means that the buyers are unlikely to challenge the $435 resistance barrier this time around.
Image: BCH/USD 4-hour chart
Now, when we look at IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP), we see that the $405 support zone is actually pretty robust.
That’s good news for the holders, since it shows that it will take an immense amount of selling pressure for the asset to break below the $400 zone.
Key Price Levels For BCH
Obviously, the $405 support level is vital since it will determine if the bears can take the price below $400 or not, resulting in a negative correction. However, if this level breaks, the next notable support is around $350, which correlates with the 20-day SMA.
On the upside, the buyers must overcome the $435 resistance level, which has proven itself to be a resistance barrier. If the bulls somehow conquer it, they will have an obstacle-free course to $480.