Bitcoin Cash Price Analysis: BCH Goes Ballistic, Launching Above $500
- Bitcoin Cash grows by more than 15% to trade close to $510.
- The short-term technical picture highlights Bitcoin Cash in the bulls’ hands.
- BCH has a relatively smooth path above $500 and toward $600.
Bitcoin Cash has in less than a week gained more than 30% of its value. Crucial support formed around $385 as the entire market retreated last week. The uptrend was most significant on Monday, whereby BCH rallied for more than 15% in just a few hours.
After clearing the barrier at $440, massive buy orders were triggered, adding credence to the bullish outlook. BCH stepped above $500 while several other resistance levels flipped into support. At the time of writing, Bitcoin Cash is exchanging hands at $506, but a weekly high has traded at $513.
Bitcoin Cash Nurtured Uptrend Seems Unstoppable
According to a buy signal on the four-hour chart, bulls are not ready to give up control. For instance, the Moving Average Convergence Divergence (MACD) indicator shows that buyers have the upper hand. The trend-following tool recently sent a signal for traders to long BCH for the first time since July 21 on the four-hour chart.
The indicator’s movement above the mean line added credence to the bullish narrative. The odds for an extended recovery increase as the divergence between the 12-day EMA and the 26-day EMA expands. Besides, with the MACD settling in the positive region, more buyers are encouraged to join the market.
BCH/USD four-hour chart
IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals there is no supply barrier that will prevent the most significant Bitcoin (BTC) fork from achieving its upside potential. Based on this on-chain metric, there is only one minor area of interest between $534 and $515 filled by a high number of investors who previously purchased BCH around this price level. Here, roughly 113,000 addresses are holding nearly 309,000 ETH.
This area may have the ability to absorb some of the buying pressure seen recently. Holders who have been underwater may try to break even on their positions, slowing down the uptrend. But if Bitcoin Cash can slice through this hurdle, it would likely climb to $585 and $600, respectively.
Bitcoin Cash IOMAP Chart
On the flip side, the IOMAP cohorts show that Bitcoin Cash sits on top of stable support. Nearly 129,000 addresses bought roughly 800,000 BCH between $461 and $478. This crucial area of interest suggests that bears will struggle to push prices down. Right now, the odds continue to favour the bulls.