Bitcoin Cash Price Forecast: BCH Lock-Step Trading Gradually Brings Bulls Closer To $800

Last Updated August 23rd 2021
2 Min Read
  • Bitcoin Cash price holds in the green despite facing a four-month descending trend line.
  • The 200-day SMA provides BCH with immediate support as bulls focus on gaining ground toward $800.
  • The IOMAP on-chain metric reveals that Bitcoin Cash is strongly supported.

Bitcoin Cash price uptrend from July initially struggled to crack the resistance at $530. However, bulls refused to give up, leading to another breakout above $600. Last week, the bullish leg stepped above $700 for the first time since early June.

Nonetheless, buyers found it challenging to keep the uptrend intact and at the same momentum. Thus, BCH retreated toward $600 but support at $615, provided by the 100-day Simple Moving Average (SMA).

Bitcoin Cash Price Battle To $800 Bound To Resume

The weekend session saw Bitcoin Cash renew the uptrend and reclaim support at the 200-day SMA. At writing, the token is exchanging hands at $685 amid a fresh push by the bulls. However, a four-month descending trend line is proving to be a hard nut to crack.

Despite the intense selling pressure at the trend line, the Moving Average Convergence Divergence (MACD) indicator hints at the trend favouring the bulls. Realize that the MACD has settled above the mean line and spots a bullish impulse. As long as this technical index remains intact, we will likely see the uptrend gain traction above $700 and close the gap to $800.

BCH/USD Daily Chart

 BCH/USD Daily Chart 082321

Simultaneously, the 50 SMA and the 100 SMA could form a bullish pattern in the coming sessions or days. As the 50 SMA crosses above the longer-term 100 SMA, the odds for a firmer bullish grip will increase. However, it is essential to realize that this is not a golden cross.

The In/Out of the Money Around Price (IOMAP) by IntoTheBlock shows that robust support is accorded to Bitcoin Cash between $624 and $644. Here, 157,600 addresses bought roughly 843,000 BCH in this region. Strong support like this will keep the downside protected, allowing bulls to focus on the recovery mission to $800.

Bitcoin Cash IOMAP Metric

 BCH/USD volume Chart 082321

On the upside, Bitcoin Cash only has one area of interest to deal with. The model shows that 150,400 addresses previously purchased 563,400 BCH around $694. Addresses in this zone will try to break even as Bitcoin gains ground, a move that could delay the uptrend. However, if broken, Bitcoin cash will quickly rally toward $800.