BCH price could climb above $550 and target highs of $600
Bitcoin cash price established a strong uptrend above $550 over the past week to touch highs of $609. However, a bearish flip saw sellers plummet BCH to lows of $502 on 16 March.
Bulls have since recovered to retest highs of $547, although a slight sell-off has put prices beneath a new resistance level marked by the middle line of an ascending parallel channel.
Bitcoin Cash price outlook
The BCH/USD pair is trading at $533 at the time of writing. It’s just above the 100 simple moving average on the 4-hour chart, with both bulls and bears eyeing the next move. For bulls, a fresh increase will likely bring BCH near $550 again. Another leg up would then help buyers target $568 and then $600.
The contrary picture could see the Bitcoin Cash price seek support near $515. Further losses are likely to encourage sellers to target $502 and $480.
BCH/USD upside view
Bitcoin Cash price made a floor at $514 on 17 March and a ceiling at $541 the day after. Together, the price pivots suggest the formation of an ascending parallel channel.
A fresh upside for BCH price depends on whether bulls can, or not, break clear and sustain momentum above the middle line of the ascending parallel channel. If they manage to crack the resistance, a run to the channel’s upper trend line could put BCH/USD near the 0.5 Fibonacci retracement level at $555.
An influx of buy orders could then see bulls target prices above the 0.618 Fib level ($568), and then the resistance at $600. If prices stay above this level, there’s a possibility that buyers will seek gains around $630 and then $700.
BCH/USD downside view
Currently, BCH/USD is capped below the middle line of the channel. The pair is also struggling to stay above the 100 SMA ($530). The outlook suggests BCH price could turn lower if sellers reinforce their ranks below the moving average and the channel’s lower boundary.
If bears break bulls at the aforementioned support levels, the next target would be the 0.236 Fib level ($527). Any more losses could push Bitcoin Cash price to this week’s low of $502. From here, sellers can break towards the $480 support level.
This post was originally published on Coinjournal.
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