Bullish nature of Bitcoin cash in the short-term

Bullish nature of Bitcoin cash in the short-term

Bitcoin Cash has insanely refused to follow the generally bearish trend across the market. The one-hour chart displays a cryptocurrency that is proving the ability to recover from the lows reached last week. The rock-solid support at $300 -305 was instrumental to the correction during the weekend sessions. However, the sensational move above the 50 Simple Moving Average and the 100 SMA 1-hour stopped shy of $345.

Bullish nature of Bitcoin cash in the short-term

A quick comeback by the sellers pressed Bitcoin Cash through the support at $335 and $330. Fortunately, $325 was reliable enough to put a stop to the declines. Besides, the 100 SMA support is instrumental to the ongoing 3.4% recovery on the day. Moreover, reaction to the inverted head-and-shoulders pattern has immensely aided in the impressive gains.

Meanwhile, Bitcoin Cash continues to make strives above the 50 SMA in addition to stepping above $340. The widening gap between the 100 SMA and the 50 SMA hints rising buying influence. The full stochastic oscillator currently in the oversold shows the bullish nature of BCH. However, traders should be alert for a retreat under 70 which is likely to signal a reversal. The various support areas to keep in mind would be the short-term $335, $330, $320 and the major support at $300 - $305.

BITCOIN CASH PRICE ANALYSIS (BCH/USD)

Over the last 24hrs, BCH/USD pair seemed to have gained momentum since it is currently changing hands above $330.0.  The famous Bitcoin cash is up by 3.2% throughout the intraday. The bullish outlook was however supported by the 7 days MA that gravitated above the 21 days MA during the last 23hrs.

Traders sentiments rose slightly before embarking to a steady flow.  The relative strength indicator that moved from the overbought market zone (above level 70) to a low of 48 reflected this.  Additionally, an immediate support level was seen at $340.6 and support level at $334.8 that was later breached.

A sharp price rise above the $350 level may be encountered if the price breaks the $340.0 level.  The RSI indicator is currently between level 40 and 60 that indicates indecision in the market momentum.

At the moment, the 21 days MA has crossed above the 7 days MA that indicates incoming bearish run.  New targets should be set at $320.0.

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