TL;DR Breakdown
- Bitcoin Cash price expected to climb above the $550 level.
- Closes support lies at $500 level
- BCH faces resistance in closing above the $525 level.
Bitcoin Cash (BCH) price seems to have found a strong support level to start a bullish trend. Today the price broke above the $500 level today and climbed to the $510 level where it currently rests.
The broader cryptocurrency market sentiment remains bullish, but a few assets have seen their prices observing slight retracement from the day’s opening price.
Bitcoin Cash price overview: Bitcoin Cash price across the last ten days
Bitcoin Cash started the year with little to no momentum on either side as the price consolidated at the $350 level. The price continued to oscillate around the mark for a few days until January 3 when Bitcoin Cash price broke above the $375 mark.
The buyers initiated a bull rally that carried the price from the $350 mark to the $425 price level. BCH observed a correction at the level that caused the price to fall back to the $400 level. The price initiated another bull rally on January 5 albeit with a lower gradient.
The second bull rally enabled BCH to leave the $400 level and climb above the $450 level. However, the price failed in closing above the $450 mark and retraced to support level at $425. The price traded close to the mark until today when the BCH markets finally observed strong bullish momentum once again.
BCH rose from the $425 level to above the $500 level with strong bullish momentum. The price has climbed above the $520 mark and trades at $523.44 at press time.
Technical indicators and what to expect from Bitcoin Cash price
Across the technical indicators, the MACD shows a bullish reversal as the 12-day EMA rises above the 26-day EMA. With the increasing sizes of the green candles, the indicator will only continue to turn more bullish. The indicator currently shows a bullish momentum in the markets.
The RSI has been on a steady increase and has risen above the 70.00 level. This suggests that there is low room for immediate upwards movement. If BCH continues to rise at this pace, the Bitcoin Cash price may observe another correction.
Overall, 18 of the 28 major technical indicators issue a buy signal while only three indicators are issuing a sell signal. Meanwhile, seven indicators remain neutral, showing no support towards either side.
The Bollinger bands are currently expanding, suggesting an increase in Bitcoin Cash price volatility across the short-term.
Traders should expect Bitcoin Cash price to establish support at the $500 psychological level. BCH should be expected to continue rising but with a slower and more sustainable pace. BCH may rise above the $525 level by early tomorrow.
Conversely, if Bitcoin Cash price falls below the $500 level, BCH may revisit the $425 support level. However, that seems unlikely given the strong bullish pressure observed in the markets
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