Bitcoin Cash Technical Analysis: BCH Keeps Consolidating Below $725
Daily Bitcoin Cash BCH Price Analysis
- Bitcoin Cash price is currently sitting on top of the 20-bar SMA in the 4-hour chart.
- BCH is currently overpriced, as per the RSI.
After climbing from $400 to $720 between February 1 and February 14, the Bitcoin Cash price seems to be trending horizontally and consolidating below $720. So, is a move to $800 in the cards? Let’s check it out.
Bitcoin Cash Price Is Currently Overvalued
Looking at the daily Bitcoin Cash price chart, we can see that BCH tried to break above $750 thrice but was forced to retract every single time. Plus, the relative strength index is hovering horizontally in the overbought zone, which could hint at an upcoming bearish correction.
Image: BCH/USD daily
However, do note that the Bitcoin Cash price is sitting on top of two healthy support levels at $700 and $685. At the former, 93,500 addresses had purchased 1.35M BCH tokens. This level is robust enough to absorb a lot of selling pressure.
The MACD in the 4-hour Bitcoin Cash price chart shows sustained bearish momentum, which should trigger a drop in price. However, as we can see, the 20-bar SMA has stubbornly refused the price to drop any further.
Image: BCH/USD 4-hour
Bitcoin Cash Is Expected To Reach These Levels
We expect Bitcoin Cash price to keep trending between the $720 and $730 level.