Bitcoin Cash’s uptrend finally came across a bit of resistance around the $984-level and if the coin fails to breach this range in the coming 24-hours, then a trend reversal cannot be discounted for BCH over the coming week. In such a scenario, the immediate support at $801 may be its target. There was also another strong support around the $701-price range, however, such a steep drop seemed unlikely given the present market scenario.
If the immediate resistance remains untouched, traders can benefit from long positions and take profit around the $800-price level.
Rationale
While BCH’s prospects on the charts have seemed quite bullish for over two weeks, a trend reversal may be in the works. As per the coin’s technical indicators such as the MACD indicator and the RSI, both look bullish in the short term. However, if one were to take a closer look at how the market has responded, it will give us a clearer picture of what to expect in the next 7 days.
The RSI, at press time, was well into the overbought zone and interestingly, the last time it occupied such a level was back on 21 February. The following day, the altcoin registered a massive price correction, one that negated a lot of its bullish momentum.
The MACD indicator, on the other hand, underwent a bullish crossover. A reversal to a bearish crossover didn’t look imminent, at the time of writing.
Important levels to watch out for
Entry point: $886
Stop loss: $968
Take profit: $811
Risk/Reward Ratio: 0.91
Conclusion
Bitcoin Cash may see a slight trend reversal, one resulting in a price correction if the immediate resistance isn’t breached in the coming day’s time. In such a scenario, the altcoin may head towards $800 in the coming week and give traders with short positions an opportunity to profit.