Bitcoin Cash increased by 13% in the past week after establishing base support above a key level. It has formed a bullish pattern on the daily chart, negotiating the next major rally as it faces a minor resistance.
Ending a three-week correction at precisely $400, which is now serving as a key support level, BCH increased for a week to retest $495 and lost steam due to a rejection. That led to a drop and the price rolled back.
It found support at $420 and has been on the rise since the start of this week, forming a new bullish pattern (double-bottom) on the daily chart.
Following this pattern, it has posted an impressive 3% gain today and is now facing resistance again, where it saw rejection last week. Breaking through this resistance will validate more upward movement daily. The expected price target to watch would be $600.
If not, we can expect a small pullback before resuming bullish at full speed. A drop below the monthly could activate another leg down in the near term. But from the look of things, the bulls are expected to sustain pressure in the upcoming days as they are just stepping back into action.
BCH’s Key Levels To Watch
As it currently faces resistance at $495, a surge through it could propel buying to $530 and potentially $590 before making a retracement. The higher resistance levels to watch next are $655 and $720, followed by a breakup.
If the price pulls back from the current trading level, the nearest level for support is $448. The weekly $420 and the monthly $400 lows are the next supports to keep in mind. A breakdown from there could trigger more loss in price.
Key Resistance Levels: $495, $530, $590
Key Support Levels: $448, $420, $400
- Spot Price: $487.8
- Trend: Bullish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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