Bitcoin Cash Technical Analysis: BCH Consolidates After Monday’s Jump
Daily Bitcoin Cash BCH Price Analysis
- Bitcoin Cash price re-entered the $500 zone this Monday.
- The overall trend in the 4-hour chart has reversed from bullish to bearish this Wednesday.
Following a bullish Monday, wherein the Bitcoin Cash price re-entered the $500 zone, it seems like BCH is going through a consolidation phase. While the technicals in the 4-hour chart indicate a short-term correction, the overall outlook looks positive.
Bitcoin Cash Price Trends Horizontally
Bitcoin Cash is currently going through a consolidation phase as it trends horizontally above $500. This Monday’s price jump managed to flip the $490 line from resistance to support. This was a crucial move since it gives BCH bulls a cushion in the event of a price drop.
Image: BCH/USD daily chart
IntoTheBlock’s IOMAP shows a lack of strong resistance barriers upfront. In fact, there seems to be a weak-to-strong resistance at $570. This tells us that if the buyers take back control, they should be able to take the Bitcoin Cash price to $570, at the very least. Breaking past this line should take BCH to $600.
In the 4-hour chart, we can see that the parabolic SAR has reversed from bullish to bearish. This shows that the price outlook in this short frame is negative. If a correction does happen, BCH has a stack of healthy support at $490, which sees a confluence of 20-bar and 50-bar SMAs.
Image: BCH/USD 4-hour chart
Bitcoin Cash Price Is Expected To Reach These Levels
If the price takes a dip, the $490 support wall should be robust enough to prevent any further downflow. If the buyers retake control, the Bitcoin Cash price should be able to reach $570.