- Bitcoin cash price analysis is bullish after an increase in price momentum
- Trading between above the $657 resistance line increased buying pressure
- The balance of power indicator on the Bitcoin cash daily chart suggests bullish advantage
Bitcoin Cash Price Price Analysis: General price overview
Bitcoin cash price analysis is bullish after an increase in price momentum for the 3rd consolidation week. The coin had begun showing signs of weakness before buyers came in aggressively and shifted focus upwards. Notwithstanding, the failure rate indicator for upward momentum is at a low of 9 percent, hence reducing the likelihood of the rally coming to an end any time soon. Bitcoin Cash rose from a 2-day low at $619 after the bears had hijacked the price at this point. Approaching yesterday’s close, BCH bounced back to the $640 region and has been trending within a bullish continuation since the start of the daily chart.
The biggest hurdle for Bitcoin Cash bulls includes increasing olume of take-profit traders near $600 – $650. Bitcoin cash daily chart shows an intraday high of $666. If buyers manage to exert more pressure into the upward momentum, a high lower could set in and bring the coin closer to the $700 target.
Bitcoin Cash price movement in the last 24 hours
Trading between the $650 – $660 and above the $657 resistance line has resulted in increasing buyer pressure. Thereby making the price point in the direction of bullish momentum. This makes any price action beyond this point impulsive and to the advantage of the bulls. Any retracements will not seriously affect the price structure of the Bitcoin hardfork token but will guarantee a consolidation phase as a fresh breakout comes into shape.
The balance of power indicator on the Bitcoin cash daily chart has been oscillating above the zero line. Therefore suggesting that the buyers are in control and beating sellers. The Bitcoin Cash balance of power indicator measures buyers’ strength against sellers. This indicator is highly volatile, and analysts usually smooth it using a moving average.
BCH/USD 4-hour chart:
On the 4-hour Bitcoin Cash price analysis, BCH/USD is breaking out of a double bottom whose trendline cut across $659. The bulls ought to hold this trendline and remain strong or else risk a bearish trigger to yesterday’s low.
Buyers are vigorously defending support at the 78.6 percent Fibonacci retracement zone ($640). Breaching this point will generally activate a sell signal, which could easily break the uptrend. Nonetheless, we have seen buyers remain intact below this point on the 2-day chart.
Meanwhile, long-term traders are holding firm to their Bitcoin Cash as they await the cap of the rally. The medium-term target lies at $680 – $700, and the long-term ranges between $800- $1000. Bitcoin cash is trading at $666 during press time.
Bitcoin Cash Price Analysis: Conclusion
Bitcoin Cash transactions count [On-chain analytics] has been dropping in the past few months after topping an all-time high in February 2021. The slumping figures might be a result of reducing transaction fees on Ethereum, following skyrocketing fees that had plagued the blockchain at the beginning of the year.
While these numbers suggest insufficient trading volumes, they still indicate the presence of institutional holders who are more potent than retail traders when driving digital currency prices upwards.