- Bitcoin Cash price expected to retest $535.
- The nearest support level lies at $480.
- BCH faces resistance in leaving the $500 mark.
Bitcoin Cash price has fallen below the $520.00 level as the price failed to establish a foothold above this level. While the price has recovered from lows of $452.62, BCH faces resistance in establishing support above the $500 psychological level.
The broader cryptocurrency market observes a mixed sentiment as most cryptocurrencies observe a bullish increase across the last 24-hours. However, the increase in price is less than two percent for most cryptocurrencies, while Bitcoin records a negative price movement across the period.
Bitcoin Cash price overview: Bitcoin Cash price across January
After starting January with relatively low volatility, the Bitcoin Cash price found strong buying momentum that initiated a bull rally. The rally enabled the price to break above the $340 level to the $440 level, where the price consolidated for a while. However, the bullish pressure was still present, and BCH continued to rise on the 9th of January, rising towards the $600 mark.
However, the sharp increase in BCH price was not sustainable, and BCH failed to close above the $600 level and fell back to the $400 support. Since then, the price has recovered to the $500 level, but BCH is still struggling to establish a foothold above the $500 mark.
Across the technical indicators, the MACD shows decreasing bearish pressure. The two EMAs are converging, suggesting a potential bullish reversal for the indicator. If BCH is able to close the day above the $500 level, the indicator would show a bullish pressure.
The RSI is neutral and moves close to the 50.00 mark suggesting low momentum towards either side. However, it also shows that the Bitcoin Cash price has a lot of room to move in either direction, and BCH may observe a sharp increase in its price volatility.
The Bollinger bands share this sentiment and are in a squeeze suggesting low volatility in the markets. This also indicates that there is a lack of momentum on either side as both the bulls and the bears fail to initiate a bullish rally. However, as the Bollinger Bands come to a squeeze, the indicator suggests that Bitcoin Cash price volatility can be expected to increase sharply.
Overall, the 4-hour technical indicators issue a buy signal suggesting a bullish price movement in the short-term. The signal is quite strong as 18 indicators are in support of a bullish price movement, while only two indicators suggest a downwards movement. Meanwhile, eight of the technical indicators remain neutral.
The 24-hour technical analysis issues a strong buy signal as only one of the 28 major technical indicators is issuing a sell signal. On the other hand, 18 indicators are issuing buy signals while nine indicators remain neutral and do not show support for either side.
What to expect from Bitcoin Cash price ?
Traders should expect the Bitcoin Cash price to retest the $525.00 resistance level. The supportive technical analysis suggests that BCH will likely break above the $525 level climbing towards the $550 level.
Conversely, if the Bitcoin Cash price falls below the $480.00 level, BCH may fall to the $440.00 mark with potential for further downwards movement towards the $400 mark.