Bitcoin Cash Technical Analysis: BCH Faces Strong Resistance In Path Back To $500
Daily Bitcoin Cash BCH Price Analysis
- Bitcoin Cash faces strong resistance around the $465 psychological zone.
- BCH has reversed parabolic SAR from bearish to bullish.
In the last two weeks, Bitcoin Cash has jumped up by 67%, going up from $275 to $460. Everyone has their eyes now on the $500 level. However, will the Bitcoin fork make it to that zone anytime soon? Let’s take a look.
Will Bitcoin Cash Make It To $500?
The technicals are looking good for BCH. The price is trending comfortably above the 20-day, 50-day, and 200-day SMAs. The moving average convergence/divergence (MACD) shows increasing bullish momentum. All this indicates that the price should be able to reach $500 with ease.
Image: BCH/USD daily chart
However, IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) shows a strong resistance barrier at $465. Previously, at this level, 28,500 addresses had purchased 853,000 BCH tokens, making this a powerful psychological level.
The bulls will need to do some work before they can successfully navigate this. Looking at the 4-hour chart, we can see the buyers have tested this level once and have since retreated. However, we can afford to have an optimistic outlook.
Image: BCH/USD 4-hour chart
There are two things that you must note. Firstly, the relative strength index (RSI) has dipped back below 70. Secondly, the parabolic SAR has reversed from bearish to bullish. Both these signs show that BCH has enough room to grow and reach $500.
Key Price Levels To Watch For BCH
For Bitcoin Cash, the only price level that matters is the $485 resistance barrier. If the price breaks above this level, then they should enter the $500 zone. Flipping this line from resistance to support will also provide the buyers with a healthy support wall.