Bitcoin Cash eventually secured bounce-back opportunities following plummets towards the $96 record low. The downside journey emerged after the altcoin lost the baseline at $275 early in May. The token’s price has hovered around the Bollinger Bands’ upper band over the past two weeks while breaking into massive volatility.
A decisive closing beyond the $162 – $174 value area might support continued uptrends in the upcoming days. Meanwhile, closing beneath the nearest support might bolster selling strength to cancel short-term bullish tendencies. While publishing this post, Bitcoin Cash changed hands at $149.7, gaining 4.83% within the previous 24 hours.
Bitcoin Cash Daily Timeframe
Bears took advantage of the escalated fear sentiment as they dragged Bitcoin Cash to a new multi-yearly low on July 13. However, bulls eventually converted the 3-month trend-line resistance to a foothold during the latest rally.
The alternative token recorded a 74.4% devaluation from April 5 and matched December 2018 lows some few weeks ago. Buyers would target to extend their buying actions as the BB’s basis line look north. Moreover, the trading volumes noted a twofold 24hr surge that triggered a bullish engulfing candle on the chart.
A closing beyond the resistance at $174 might see BCH on price discovery. Such developments would have possible targets around the $196 area. Nevertheless, a short-term bearish drag might delay the recovery through a retest to the $130 – $136 in the upcoming sessions.
Reasoning
The previous day saw the bearish Relative Strength Index slamming into overbought resistance. Sustained reversals beneath this area would support sellers in restricting an immediate upside break. Moreover, the Chaikin Money Flow kept its peaks over the previous week and exhibited a minor bearish divergence with BCH’s price action. Nevertheless, the Moving Average Convergence Divergence lines have secured a position beyond the zero-line, depicting a surging buying momentum.
Conclusion
Considering indicators’ mixed readings, Bitcoin Cash might witness a near-term slowdown. That would see bulls targeting the $174 area. Targets would stay as highlighted above. Nevertheless, BCH boasts a whopping 89% monthly correlation with BTC. Therefore, investors should watch BTC’s movements to ensure accurate decisions.
