Bitcoin Cash Faces Final Resistance Before $520. Will it Break it?

Bitcoin cash had its biggest single-day surge on Friday. The 1-day chart shows that since last Thursday, it has grappled with significant selling pressure and reduced buying pressure.

Nonetheless, it has been mostly bullish this week. The current session will mark its fourth green and brings the total gains on the 1-week scale to almost 5%. However, there’s more to the recent hike that may affect price actions in the coming days.

The asset opened trading at $454 and surged to a high of $475. At its peak, it was up by over 4%. It faced significant selling pressure after attaining the high, resulting in a drop to $464. As it stands, BCH has shed more than half its previous gains and is not slowing down.

Nonetheless, a closer look at the chart shows why the correction happened. Last week, the altcoin had a massive surge on Wednesday, surging from $444 to $476. What followed was a two-day decline that saw it retrace by over 4%.

Based on the repeated failure to decisively flip this mark, it is clear that there’s notable selling congestion at the mark.

Aside from previous price movement, the bollinger bands offer another reason for the rejection. Bitcoin cash has traded below the SMA since the last week of February and has trended close to the lower band for an extended period.

However, the trend changed last week when it bounced off the lower line. Its target was the middle band. Nonetheless, during the bear run, prices have traded below the SMA. A closer look at the chart shows several instances where this. The recent rejection only reinforces this pattern.

What’s Next for Bitcoin Cash?

Following its failure to decisively flip the middle band, the price may retrace further in the coming days. The BB points to a possible decline to the lower band at $410.  

However, the fibonacci retracement levels offer a glimmer of hope. Bitcoin cash has traded below the 23% mark since the start of March. Interestingly, all attempts to surge above this region were unsuccessful, as they were met with rejection.

If the bulls sustain upward momentum and push prices toward $480, BCH may end its range-bound movement. It will move up and begin trading in the 38%- 23% range. The altcoin will break above $500 once prices stabilize above $480.

Nonetheless, the bollinger band moves the target higher. If prices trend around the highlighted mark, decisively flipping the middle band, the asset will attempt the upper band at $520.

The moving average convergence divergence suggests that Bitcoin Cash may surge higher in the coming days, making this prediction a reality. It displayed a positive crossover a few days ago, heralding further increases.

In summary, BCH is trading at a crossroads. If the bulls stage a buyback and push prices above $480, a push toward $520 is likely this month. However, if they fail, prices may retrace to $400 before rebounding.

In other news, TRUMP is gearing up to be the top gainer over the last 24 hours. The memecoin recently experienced a significant spike in buying pressure, pushing prices from $2.93 to a high of $4.50. At its peak, it was up by over 54%.

It is currently seeing notable corrections and trades at $3.90. Nonetheless, it may end the day with gains exceeding 30%.

The post Bitcoin Cash Faces Final Resistance Before $520. Will it Break it? appeared first on CoinTab News.