Bitcoin Cash Could Move Towards The $500 Level In The Near Term
This week, bitcoin cash price started a strong rise above the $380 resistance area against the US Dollar. Moreover, BCH price settled above the $396 pivot level and the 55 simple moving average (4-hours).
Finally, the bulls pushed the price above the $420 and $435 level. It traded to a new 2020 high at $459 and it is currently consolidating gains. Besides, there was a minor downside correction below the $440 level.
The price dipped below the 23.6% Fib retracement level of the upward move from the $371 low to $459 high. However, the price remained well bid above the $420 level.
The 50% Fib retracement level of the upward move from the $371 low to $459 high also acted as a support. Additionally, it seems like there is a short term ascending channel forming with support near $435 on the 4-hours chart of the BCH/USD pair.
On the upside, a clear break above the $450 and $460 levels may perhaps open the doors for a larger upward move. The next stop could be $500. An intermediate resistance might be near the $485 level.
Related Reading: Bitcoin Cash Hits Seven-Month High
On the downside, the channel support at $435, below which bitcoin cash price might decline towards the $420 support level. The main support for the current trend is near the $396-$400 area (the recent breakout zone). Any further losses may perhaps push the price into a bearish zone below $380.
Looking at the chart, bitcoin cash price is clearly gaining strength above $420 and $435. As long as there is no close below the $400 handle, there are chances of another upward move above $450. The key target for the bulls could be $500.
4 hours MACD – The MACD for BCH/USD is currently losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is correcting lower from well above the 70 level.
Key Support Levels – $435 and $420.
Key Resistance Levels – $450 and $485.
Bitcoin Cash Could Move Towards The $500 Level In The Near Term – Source: https://www.livebitcoinnews.com
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