Daily Bitcoin Cash BCH Technical Analysis
Bitcoin Cash price has flipped the 50-day SMA from resistance to support.
The 4-hour BCH price chart has flashed multiple buy signals.
Bitcoin Cash price has been trending in a downward channel formation since January 11. Between January 11 and January 27, BCH dropped from $600 to $375, losing $225 in its overall valuation. Before Wednesday’s drop, the Bitcoin fork was trending horizontally around the $440 resistance barrier for four straight days.
Bitcoin Cash Price Flips 50-day SMA From Resistance To Support
The bulls finally managed to take control after three straight bearish days. Even though the Bitcoin Cash price flipped the 50-day SMA from resistance to support, the overall market sentiment may still be negative. BCH needs to go up to $425 to break above the channel formation.
Image: BCH/USD daily
The $440 resistance barrier is extremely strong. Previously, at this level, 114,000 addresses had purchased 1.6 million BCH tokens. If the bulls overcome this obstacle, the Bitcoin Cash price should reach the 20-day SMA ($475).
Image: IntoTheBlock
Looking at the 4-hour chart, we can see that today’s price movement reversed the parabolic SAR from bearish to bullish. However, a couple of indicators show us that the market sentiment in this timeframe may still be bearish.
Image: BCH/USD 4-hour
These two indicators are:
The MACD shows sustained bearish momentum.
The 200-bar SMA has crossed over the 50-bar SMA to form the death cross pattern.
Bitcoin Cash Price Is Expected To Reach These Levels
If this bullish moment is temporary, the 50-day SMA should prevent further downflow. However, if the bears break below this level, the Bitcoin Cash price should reach a $330 support wall.
