BCH Price Analysis – January 15
Bitcoin Cash (BCH) rides the bulls on the daily chart but the coin couldn’t break out of the ascending channel.
Resistance levels: $400, $410, $420
Support levels: $264, $254, $244
If the BCH trading volume can continue to increase significantly, a bullish run is likely to occur. Following the recent price, Bitcoin Cash is currently facing a critical resistance at $350 level at the upper boundary of the channel. A break above the ascending channel is likely to produce a huge green candle to the upside, marking resistances at $400, $410, $420 levels and above. By that time, the BCH/USD market will follow a bullish run.
However, a bearish step back is likely to roll the market back to $270 support with a possible break down to $264, $254 and $244 supports, establishing a new low for the market. Looking at the chart, we can see that the trading volume is rising, giving a sign of an upcoming big move. The RSI (14) hovers around the overbought area due to the price increase. Whereas, a precise bear cross might reveal a sell signal for the market.
Against BTC, the market bounces back a few days ago to move above the 9-day and 21-day moving averages. Yesterday, BCH eventually broke up the channel, which raised the price to 0.041 BTC before the slight drop today. Bitcoin cash has now faced the south, likely to meet the support at 0.033 BTC and 0.032 BTC, should the bears put more pressure. However, the RSI (14) is ready to move out of the overbought zone.
Meanwhile, from the market structure, we can say the bulls have regained control of the market. Before the positive climb start, BCH is likely to retrace to the break level around 0.040 BTC where it started trading today. More so, if the Bitcoin Cash can rise above this level, the price of the coin may find resistance at 0.044 BTC and 0.045 BTC.
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