Bitcoin Cash [BCH] Price Analysis: Brief Surge Catapults BCH Above $300

By John Isige
Published April 23, 2019 Updated April 23, 2019
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Bitcoin cash price analysis
Chart Source: TradingView

Bitcoin Cash [BCH] Price Analysis: Brief Surge Catapults BCH Above $300

By John Isige
Published April 23, 2019 Updated April 23, 2019
  • Bitcoin Cash correction below 100 SMA culminated in declines that found support at $280.
  • Bitcoin Cash is among the biggest single-digit gainers with gains in the excess of 4% on the day.

BCH/USD settled at $280 during the last weekend trading sessions. The bear pressure that swept across the market slashed Bitcoin Cash gains from weekly highs around $335. The price corrected lower within the falling channel. A move under the 100 simple moving average (SMA) 1-hour resulted in further declines below $300. The declines remained unstoppable until BCH/USD touched the support congestion area at $280.

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BCH/USD 1-hour chart

Bitcoin cash price Analysis
Chart Source: TradingView

The entire cryptocurrency market shows green shots everywhere following the return of the bulls on Tuesday. Bitcoin Cash is among the biggest single-digit gainers with gains in the excess of 4% on the day. There was a struggle at $290 after recovering from the key support at $280. However, BCH bulls pushed the price further towards the channel resistance which coincided with the 100 SMA. Trading past this level gave way for a bullish engulfing candlestick which zoomed past $300 and extended the gains to form an intraday high a $312.97 (on Coinbase).

Also Read: Crypto-Market Update: Bitcoin Breaks above $5400 As Alts ETH, LTC and XRP Begins to Decouple

While the surge has lost steam and Bitcoin Cash retreated to $304, the technical and fundamentals levels have remained intact. The relative strength index (RSI), for instance, is in an upward direction and fighting to enter the overbought. The uptrend in the indicator comes after it recovered from levels around 19.13 (oversold) on Sunday. Moreover, the upward divergence in the moving average convergence divergence (MACD) at +2.48 confirms the developing bullish momentum.

Therefore, a broader look at the chart shows that Bitcoin Cash is likely to make a further correction to the upside which is immediately capped at $310. The second resistance is seen at $320 while the supply zone at $330 will open the gate for gains that could test $350 and eventually break 2019 high towards $360.

Bitcoin Cash Key Technical Indicators:

100 SMA 1-hour: Resistant turned support at $296.99.

RSI 1-hour: 70.00 (overbought zone).

MACD 1-hour: +2.03 (increasing upward divergence).

Support 1: $290.00

Support 2: $280.00

Resistance 1: $312.97 (intraday high).

Resistance 2: $330 (Key hurdle and breakout point).

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1106 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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