Bitcoin Cash (BCH) recently saw a significant price hike, reaching $681, an increase of more than 133%. Following this peak, the cryptocurrency has entered a phase of correction, with its price currently undergoing a downward adjustment. The duration and extent of this correction phase are yet unknown, leaving investors and market watchers speculating about the future movements of BCH.
Current Market Corrections and Key Support Levels
The current correction in BCH’s price has surpassed 38%, with the currency now testing crucial support levels. A significant level of support is found near $480, aligning with Fibonacci retracement levels. Should this level fail, BCH could find further support around $325, bolstered by the 50-month Exponential Moving Average (EMA). Technical indicators such as the Moving Average Convergence Divergence (MACD) histogram display an upward trajectory, while the Relative Strength Index (RSI) remains neutral, suggesting a potential for recovery or further correction.
Potential for Recovery and Resistance Levels
On a more optimistic note, if BCH manages a solid rebound from the $480 support, it could aim to breach the $681.4 resistance, marked by the 0.382 Fibonacci level. Overcoming this barrier may set the stage for BCH to target the $1,050 mark, a significant milestone that could herald the start of a new bullish phase.
Considered Points
- If BCH sustains above $480, watch for a potential rise towards $681.4 and beyond.
- A breach below $480 could push BCH towards the $325 support level.
- Technical indicators like MACD and RSI are crucial for gauging the potential direction of BCH price movements.
Moreover, comparing Bitcoin Cash with Bitcoin (BTC), it’s evident that BCH faces stiff resistance in BTC terms, especially around 0.00999 to 0.0108 BTC. Despite the broader upward trend in MACD lines on the monthly chart, a downturn in the MACD histogram accompanied by a neutral RSI could indicate challenging times ahead for Bitcoin Cash. This comparison underscores the volatility and unique challenges facing BCH even as it navigates through significant support and resistance levels.