Key Takeaways
- Bitcoin Cash surged past $400, marking its highest price since March 7. This extended a 30-day rally of nearly 50%.
- MACD crossover supports the price rally, with the 12 EMA crossing above the 26 EMA, suggesting a further uptrend.
- The IOMAP chart shows strong support between $392 and $405, where most coins are in unrealized profits.
Bitcoin Cash (BCH) has finally surged past $400, overcoming several failed attempts and marking its highest level since March 7. Bitcoin Cash’s price achieved this after extending its 30-day rally to nearly 50%.
On Monday, the altcoin briefly dropped to $353.28. But after printing three consecutive daily green candlesticks, it opted against undergoing another correction.
Technical indicators reveal that BCH seems ready to continue with this uptrend. In this analysis, CCN breaks down whether the bullish momentum can hold and what price levels Bitcoin Cash might target next.
Bitcoin Cash Invalidates Rising Wedge
As we previously analyzed, Bitcoin Cash’s price has been trading within an ascending channel since the second week of April. According to the daily chart, this uptrend eventually led BCH to form a rising wedge.
A rising wedge is a bearish pattern that forms during an uptrend. It indicates potential price exhaustion and a trend reversal to the downside. From the chart, the increasing price narrowed within a range for most of the last week of April.
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Later, buyers exhausted themselves, leading BCH’s price to drop to $353.28. However, BCH bulls invalidated this bearish pattern and potential correction on Tuesday, increasing the price.
The Moving Average Convergence Divergence (MACD) further reinforces the bullish outlook, with a positive reading and a bullish crossover of the Exponential Moving Average (EMA).
As of this writing, the 12 EMA (blue) has crossed over the 26 EMA (orange). Bitcoin Cash’s price will likely break above the resistance at $434.73 if sustained.
Support Remains Solid
From an on-chain perspective, CCN examined the In/Out of Money Around Price (IOMAP). The IOMAP uses the volume of coins in unrealized profit or loss to spot support and resistance.
The higher the profit volume, the stronger the support. However, a larger cluster of coins in losses indicates resistance.
According to IntoTheBlock, BCH’s significant resistance is between $392.21 and $405.46. At this level, over 111 addresses have 968,060 coins in unrealized profits.
This is more than the coins in unrealized losses between $418.70 and $481.62. Therefore, it appears that the support around Bitcoin Cash’s price is stronger than the resistance. Hence, the recent surge is likely to continue.
BCH Price Analysis: To Edge Close to $500
Considering this position, the 4-hour chart shows a notable hike in the Awesome Oscillator (AO) reading. The AO measures momentum by comparing recent price movements with historical ones.
When the AO reading is negative, momentum is bearish. But a positive AO, as it is in this case, indicates bullish momentum.
Bitcoin Cash’s price might break above the resistance at $426.25 if this continues. If successful, the next target for BCH could be the highest point of the wick of the latest candlestick at $485.30.
However, if momentum turns bearish, this prediction might not become a reality in the short term. Instead, BCH’s price might fall below the 0.618 Fibonacci level at $390.10.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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