Bitcoin Cash Technical Analysis: BCH Bounces Up From Healthy Support Zone
Daily Bitcoin Cash BCH Price Analysis
- Bitcoin Cash price is consolidating around the $440 psychological zone.
- The Bollinger Band is narrowing considerably, which shows decreasing price volatility.
Bitcoin cash price plummeted from $495 to $418 on Thursday, January 21, before the buyers stepped back in for a slight recovery. However, the buyers and sellers have pretty much engaged in a tug-of-war since then. The Bitcoin cash price is currently trending horizontally around the $440-level.
Bitcoin Cash Price Stuck Between Strong Levels
As things stand, the Bitcoin cash price is currently stuck between one strong resistance barrier at $445 and another healthy support wall at $435. The latter has been crucial in keeping the price at this level and preventing further downtrend. The moving average convergence divergence (MACD) tells us that the market momentum is becoming increasingly bearish. This means that the $435 support wall is likely going to get tested again.
Image: BCH/USD daily chart
Bitcoin Cash price currently faces a strong resistance barrier at $445. Previously, at this level, 100,000 Bitcoin addresses had purchased 1.25 million BCH tokens. As you can see by observing the Bitcoin Cash price chart, this level has repeatedly thwarted the bulls in the last two days, and overcoming this will be quite a challenge.
The 4-hour Bitcoin Cash price chart shows that BCH is currently going through a period of low volatility. This can be seen by the constricting of the Bollinger band. The 20-bar SMA, which coincides with the $435 support line described above, will be crucial in stopping any catastrophic falls.
Image: BCH/USD 4-hour
Bitcoin Cash Price Is Expected To Reach These Levels
If bears overwhelm the buyers and take control of the market, the Bitcoin cash price will drop to the 200-bar SMA ($420) in the 4-hour chart. A further break could take BCH to the 50-day SMA ($380).