Bitcoin Cash Technical Analysis: BCH Breaks Into $400 Zone
Daily Bitcoin Cash BCH Price Analysis
- Bitcoin Cash has managed to break above $400 for the first time since February 2020.
- Cryptotoad, a popular crypto price analyst on Twitter, expects BCH to reach $1,000 soon.
Bitcoin Cash has gained nearly $100 in its valuation over the last 4 days, rising from $340 to $433. This is the first time that the Bitcoin fork managed to break above the $400-level since February 2020.
Bitcoin Cash Aims For $450
This Sunday, the price managed to flip the $360 line from resistance to support and reach $424. As of now, the price will aim for the $450 psychological level to make its way into the $500 zone. The relative strength index (RSI) has crept into the overbought zone, which shows that the asset is overvalued and could force short-term price correction.
Image: BCH/USD daily chart
Looking at the 4-hour price chart, the band narrowed down considerably between 29th December to 2nd January. During this period, as you can see, the price was going through a period of heavy consolidation. Following this consolidation period, the price has exploded up. The Bollinger jaw has expanded considerably, showing increasing price volatility.
Image: BCH/USD 4-hour chart
Cryptotoad, a popular crypto price analyst on Twitter, expects BCH to reach $1,000 soon.
Key Price Levels To Watch For BCH
The most important psychological level to watch for BCH is the $450 zone. If the buyers manage to not sell-off, the price should reach $500. However, a sell-off will take the price down to the $360 support barrier.