Bitcoin Cash Technical Analysis: BCH Aims For $500 Psychological Level
Daily Bitcoin Cash BCH Price Analysis
- Bitcoin Cash price has found steady support at the 50-day SMA.
- BCH has a strong resistance barrier at $510.
Bitcoin Cash price has jumped from $443 to $493, gaining more than $50 in its overall valuation. Let’s take a closer look at the price action with technical analysis.
Bitcoin Cash Price Finds Steady Support At 50-day SMA
Since January 28, The Bitcoin Cash price has jumped from $378 to $493, gaining around $115 in total valuation. In the process, the 20-day SMA has reversed from resistance to support. Note that the relative strength index (RSI) has yet to go into the overbought zone, giving more space for growth.
Image: BCH/USD daily
As we can see, there is a strong resistance barrier at $510. Previously, at this level, 77,500 addresses had purchased 842,500 BCH tokens. This level has so far proved to be extremely robust. Breaking past this should take BCH to $550.
The 4-hour Bitcoin Cash price chart shows two very positive signs:
- The MACD shows sustained bullish momentum.
- The parabolic has flipped from bearish to bullish.
Image: BCH/USD 4-hour
Bitcoin Cash Upgrades Won’t Cause Permanent Forks
Bitcoin Cash (BCH) developers have recently assured the crypto community that the blockchain network is unlikely to experience a chain split when it undergoes the next upgrade on May 6, 2021.
Cameron Lee, a musician who accepts BCH for payments, had asked the devs if there will be a split during the blockchain’s upcoming upgrade. During Bitcoin Cash’s 2018 hard fork, he noted that a faction split off to create a new blockchain called Bitcoin SV led by Craig Wright.
Bitcoin Cash developer Josh Green responded by saying that future splits are unlikely. He noted that it would be “difficult for a split to happen at this point,” as an alternate node team would need to deliberately advocate for change and gain a prominent share of Bitcoin Cash’s mining power.
Paul Wasensteiner, Executive Director of the Bitcoin Cash Association, said that the goal is to not have any splits at all, ideally for several years. He added that developer discussions help prevent splits by bringing together the blockchain’s ecosystem. He added:
It’s not just about May, it’s about all of the foreseeable future of Bitcoin Cash.
Another developer, Emergent Reasons, noted that Bitcoin Cash and similar blockchains are designed so that miners can intentionally split the blockchain. However, he says that there is “basically no chance” of that as nobody desires a split.
Reasons concluded that there is no single approach that will ensure that splits do not occur in the future. However, he noted that the development community aims to establish a culture that instantly clarifies how companies and devs feel about proposed changes.
Bitcoin Cash Price Is Expected To Reach These Levels
Bitcoin Cash price is likely going to test the $500 level. If they somehow cross the $510 resistance barrier, BCH will reach $550.