Bitcoin Cash Price Forecast: Bitcoin Cash Anticipates 28% Surge Amid $400 Resistance.
Key Points
Bitcoin Cash (BCH) started the week on a positive note, experiencing a 0.8% increase in trade at $388 on Monday. Technical analysis and fundamental indicators suggest a rally that could drive BCH to $515.
BCH Price Forecast and Key Technical Breakout
Bitcoin Cash is showing signs of a technical breakout, as seen on the four-hour chart. However, traders need to consider several factors, such as market sentiment, institutional demand, inflation, geopolitical developments, and possible sell-side pressure from Mt. Gox creditors.
Long-term perspectives point to a bullish outlook, with BCH potentially reaching heights above $1,000. In the short term, BCH shows promise in breaking through the $400 and $500 resistance levels.
Bitcoin (BTC), meanwhile, is holding short-term support at $67,000, according to CoinMarketCap. This follows a strong rebound from $64,000 last week.
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If Bitcoin manages to overcome the $70,000 resistance, it could trigger a new price discovery phase, significantly boosting BCH’s chances of climbing toward $1,000.
The four-hour chart reveals an inverse head and shoulders (H&S) pattern, which indicates a possible trend reversal upon breaking the neckline (resistance).
Traders should wait for a clear breakout above the neckline, potentially signaling a 28% increase for BCH. After assessing the risks, traders might consider entering a buy position above the neckline, with a stop loss set just below it.
Bullish Indicators for Bitcoin Cash
The potential inverse H&S breakout to $515 will depend on several bullish indicators. A golden cross on the four-hour chart is essential for maintaining trader interest in long positions.
The American trading session will be crucial for BCH’s price action, beginning with reclaiming the 20-day EMA at $390.
Support at $383, formed by the 50-day EMA and 200-day EMA, must hold to prevent increased sell pressure. Falling below this support level could lead to downward momentum.
The Moving Average Convergence Divergence (MACD) indicator currently displays a sell signal, which might encourage some traders to short BCH, contributing to the price stagnation below $390.
As the red histograms in the MACD grow, the probability of BCH falling to $370 increases.
With the inverse H&S breakout still unconfirmed, Bitcoin Cash may drop to $350 before gaining strength for a significant upward movement.