Bitcoin Cash (BCH) seems to challenge vital price zones following a rebound from its support at $470. For now, investors can anticipate a cross between the four-hour 20 and 50 Simple Moving Averages, favoring bulls with more buy signals.
If Bitcoin Cash produces a close beyond $550, it will cancel selling activities. With that, BCH can develop a footing for the next massive rally. While writing this article, Bitcoin Cash trades at $542 after gaining 7% since yesterday.
BCH Four-Hour Chart
Analysts used the FIB retracement to determine Bitcoin Cash’s plunge from $800 towards swing low at $471 to tell a likely reversal area. A close beyond the 23.6% FIB level can help the altcoin overcome selling pressure to aim at $600. From here, another 6% surge is possible if the 200 Simple Moving Average fails to halt the coin’s uptrend. That accounts for a 17% uptick from BCH’s current value.
If the asset fails to gather strength to break past its immediate challenge at $550, investors can expect Bitcoin Cash to retest the support level at $520. The confluence around the 20 and 50 Simple Moving Averages might also cushion any counteractions by sellers. If Bitcoin Cash revisits the price levels around $470, a triple bottom can propel upticks.
Reasoning
At the moment, the Relative Strength Index stays in the overbought territory, presenting a short-term challenge. However, analysts predict an upsurge beyond this top-level if the index maintains beyond 60. Meanwhile, the Moving Average Convergence Divergence has to prevent a bearish cross. That way, it can preserve an upswing pressure in the crypto market. The DMI (Directional Movement Index) decreased the chances of a sudden reversal provided the +DI maintain beyond –DI.
Conclusion
For now, Bitcoin Cash has a probability of moving slightly under the 23.6% FIB level before trying an upswing. With that, the RSI can stabilize as it awaits another bull cycle. Buyers can capitalize on the asset movements, pressing past $600. At the same time, bulls can challenge the 50% FIB level. However, these are speculations, research before investing.
Feel free to comment on anything related to the above content.