Bitcoin Cash Price Prediction: BCH Bears Keep Throwing Jabs as Declines Hover
- Bitcoin Cash holds slightly above the ascending channel’s lower boundary support.
- The IOMAP on-chain model validates an immense resistance between $514 and $527.
Bitcoin Cash price seems to be close the gap toward $500 after running a barrier at $540. Before the ongoing correction, BCH had sustained an uptrend from the crash to $410 in May. An ascending parallel channel has mainly controlled the price action. In addition to the resistance at $540, the channel’s middle boundary made recovery a problematic endeavor.
Why must Bitcoin Cash hold within the uptrend
The Moving Average Convergence Divergence (MACD) indicator has a slightly bullish outlook based on its leveling motion. Note that MACD is a momentum oscillator utilized in trading trends but rarely used to identify overbought and oversold conditions. This technical tool manifests on a chart with a couple of trend lines oscillating with no boundaries.
It is worth keeping in mind that the crossover of these two lines is a trading signal resembling that of the moving average system. As the 12-day moving average crosses above the signal line, a bullish signal occurs. The trend tends to flip bearish when the 12-day moving average crosses below the 26-day moving average.
For Bitcoin Cash to avoid a massive downswing below the ascending parallel channel, the MACD must hold above the mean line. In addition to that, the MACD line must sustain the position above the signal line.
BCH/USD four-hour chart
Simultaneously, a golden cross pattern appears as soon as the shorter-term Simple Moving Average (SMA), crossed above the longer-term moving average 100-day. This pattern points at Bitcoin Cash’s ability to resume the uptrend. Besides, both of these moving averages are in line to offer the much-needed support and ensure that BCH flips bullish again.
On the upside, the middle boundary resistance must come down for gains toward $600 to confirm. A break above the 200 SMA may trigger more buy orders as investors speculate another significant upswing toward $1,000.
Bitcoin Cash price bearish outlook
The IOMAP model by IntoTheBlock (ITB) cements the bears’ influence over the price by revealing the massive resistance zone between $514 and $527. Within this range, around 165,000 addresses had previously bought approximately 700,000. Trading above this zone will not be a walk in the park; thus, recovery may take longer to come into the picture.
Bitcoin Cash IOMAP model
On the flip side, Bitcoin Cash price sits on top of a relatively strong support area, in turn, addition. This buyer congestion zone is highlighted between $484 and $498. Here, roughly 127,000 addresses currently profit from the approximately 612,000 BCH purchased in the range. In other words, this support area is not strong enough to hold Bitcoin Cash for long and may cave amid the increasing battering from the bears.