- Bitcoin Cash technical levels are aligning for the ultimate liftoff above $500.
- BCH transaction history model highlights massive support between $445 and $458.
Like other cryptocurrencies in the market, Bitcoin Cash suffered under the strong arms of the bears at the beginning of the week. The losses extended from the mid-June recovery to $650 to $390.
The price dip may have allowed investors to come in at a lower price, bolstering the price toward $500. As technical levels shape up for the uptrend, Bitcoin Cash appears to draw closer to a massive liftoff in the coming sessions.
Can Bitcoin Cash surmount overhead pressure at $500?
Bitcoin Cash price teeters at $487 after the remarkable recovery from the recent dip to $390. Setting above $480 (immediate support) allows bulls to focus on jumping above $500.
Meanwhile, the trend seems to favor the bulls, especially with the Moving Average Convergence Divergence (MACD) closing the gap to the zero line. As soon as the trend momentum indicator crosses into the positive region, an upsurge of buy orders is expected. The MACD line (blue) above the signal line flashed a bullish signal, setting the precedence for the ongoing recovery.
BCH/USD four-hour chart
At the same time, buyers seem to be getting more aggressive, as emphasized by the Relative Strength Index (RSI). A break past the midline will cement the bulls’ presence and impact, leading to the price cracking the $500 barrier while closing the gap to the overbought region will trigger gains toward $650.
The IOMAP model by IntoTheBlock shows precise resistance and support zones and helps traders validate or invalidate trends. For example, the robust support between $445 and $458 suggests that the slightest resistance path is upward. Note that roughly 83,400 addresses previously purchased around 715,000 BCH.
Bitcoin Cash IOMAP model in the green
On the upside, weakening barriers add credence to the bullish outlook. Nevertheless, buyers should focus on breaking the on-chain hurdle running from $527 to $544. Here, approximately 123,400 addresses previously purchased 441,000 BCH. When this subtle resistance is out the way, Bitcoin cash will roll up to accomplish the recovery target at $650.
What could hinder Bitcoin Cash recovery to $650?
A daily close under $500 could see overhead pressure rise. Another correction from this price level may trigger sell orders amid investor panic. Note that support at $400 to $390 is in line to stop the losses from exploring the rabbit hole toward $300.