Bitcoin Cash Price Analysis: BCH Could Rally Again Above $500
Bitcoin cash price surged higher and traded above $500.00 before correcting gains. BCH is currently consolidating and seems to be preparing for the next break.
- Bitcoin cash price traded to a new monthly high at $518.09 before correcting lower.
- BCH is trading inside a contracting triangle with support at $462.00 on the 2-hours chart.
- If there is a break above the $485.00 resistance, the price could start a fresh increase.
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Bitcoin Cash Price Analysis (BCH to USD)
This past week, bitcoin cash price followed BTC’s rise and surged above the $475.00 and $490.00 resistance levels. BCH/USD even traded above the $500.00 level and formed a new monthly high at $518.09 before correcting lower.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair started a major downside correction after it failed to clear the $520.00 level. It broke the $500.00 and $490.00 support levels.
During the decline, the price traded below the 23.6% Fib retracement level of the upward wave from the $405.17 low to $518.09 high. The decline was such that the price even spiked below the $480.00 support and the 25 simple moving average (2-hours).
However, the $460.00-462.00 support zone acted as a strong support. The 50% Fib retracement level of the upward wave from the $405.17 low to $518.09 high also acted as a support.
Moreover, there is a contracting triangle forming with support at $462.00 on the same chart. If there is a downside break below the $260.00 support, the price could extend losses towards the $440.00 trend support area.
Conversely, if there is an upside break above the $480.00 barrier, the price could start a fresh increase. An immediate resistance is near $490.00, above which the bulls are likely to take control.
A convincing follow through above $500.00 will most likely set the tone for a new high above the $520.00 level. Similarly, there are possibilities of more upsides in bitcoin, Ethereum and ripple in the coming sessions. BTC/USD could even climb above the $11.5K mark if it stays above the $10.0K support.
The market data is provided by TradingView, Coinbase.
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