Bitcoin Cash Technical Analysis: BCH bulls have clear path to $400

Last Updated July 23rd 2021
2 Min Read

Daily Bitcoin Cash BCH Price Analysis
  • Bitcoin Cash faces a moderate-to-weak resistance at $380.
  • The MACD in the 4-hour chart shows increasing bullish momentum.

Unlike most of its peers, Bitcoin Cash managed not to have a bearish Sunday as it looks to reach the $400 barrier. There is a lack of strong resistance barriers upfront, which gives further credence to our overall bullish outlook.

 

BCH outlook looks positive

As per the daily price chart, Bitcoin Cash has been on an uptrend, rising from $259 to $368.25 over the last 10 days. Looking at the IOMAP, one can see a lack of strong resistance levels, giving the buyers a clear path to $400.

bch/usd daily chart 122120

Image: BCH/USD daily chart

There is a moderate-to-week resistance level $380, which shouldn’t be much of an issue to get over. On the downside, there are two healthy support zones at $340 and $305 (the 50-bar SMA in the 4-hour time frame).

bch/usd volume chart 122120

Image: IntoTheBlock

The 4-hour chart also gives further credence to our bullish outlook since the MACD shows increasing bullish momentum.

bch/usd 4-hour cahrt 122120

Image: BCH/USD 4-hour chart

However, one should also note that the relative strength index (RSI) has entered the daily chart's overbought zone. This could trigger a potential short-term price correction.

 

Key price levels to watch for BCH

The buyers must overcome the slight resistance at $380 to continue moving into the $400 zone. On the downside, if the bears take control, the support zones at $340 and $305 (50-bar SMA in the 4-hour time frame) must hold firm to keep the price up.

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