Bitcoin Cash Technical Analysis: BCH Bulls Momentum Stifled At The $525 Resistance Barrier
Daily Bitcoin Cash BCH Price Analysis
- BCH bears took back control after two straight bullish days.
- IOMAP shows a lack of strong resistance barriers on the upside.
Over the last two days, Bitcoin Cash's price rose from $450 to $525, gaining nearly $75 in its overall valuation. While the buyers expect BCH to rebound further and cross the $550 psychological zone, it seems like the bears had something else in the works.
Bitcoin Cash Bears Came Back Following Two Straight Bullish Days
The Bitcoin fork has encountered stiff resistance at the $525 barrier. As things stand, the buyers have run out of steam in this zone. The relative strength index shows that the asset is not yet overvalued, so a further upswing may be expected.
Image: BCH/USD daily chart
Unfortunately, for Bitcoin Cash price, it appears that we have a robust resistance barrier at the $525 zone since 64,000 addresses had previously purchased 1.72 million BCH tokens at this zone. Repeated rejections at this zone could take the price down to the 20-day SMA ($435). But the 4-hour chart gives us another support wall that could stem such a drastic downflow.
The 4-hour chart for Bitcoin Cash shows us a strong support wall at $490, which sees a 20- bar and 50-bar SMA confluence. If this level holds, the buyers may bounce up from this zone and attempt to break past the $525 resistance line. The MACD shows sustained bullish momentum, which also gives further confidence to the bulls.
Image: BCH/USD 4-hour chart
Bitcoin Cash Price is Expected To Hit What Level?
We can expect the Bitcoin Cash price to hit the $490 zone (20-bar and 50-bar SMAs). The critical part lies in how the BCH will react after seeing this level. Are the buyers going to bounce the price back up to the $525 zone? Or are the bears going to take control and push the price down to the 20-day SMA ($435)? We will need to find out in the weekend.