Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin Cash Analysis: (BCH/BTC) Renewed Support Carries BCH Over $1,000, Signals Looking Good For A Continuation

Published 04/21/2018, 08:20 AM
Updated 04/21/2018, 08:31 AM
 Bitcoin Cash Analysis: (BCH/BTC) Renewed Support Carries BCH Over $1,000, Signals Looking Good For A Continuation

Bitcoin Cash Analysis: (BCH/BTC) Renewed Support Carries BCH Over $1,000, Signals Looking Good For A Continuation

Bitcoin Cash has outperformed the market against BTC today, becoming the best gainer among the top 20 cryptocurrencies with a 9.75% rise.



Looking at the 2hr chart above we can see that BCH exploded off the bottom, after consolidating around the 9,000 Sats support.

During the opening bull run we can see the price action broke clear above the 0.786 fibonacci level before correcting back to it, after BCH became overbought on the RSI indicator.

MACD is bearishly diverging back down towards the signal line which tells us the bulls are starting to tire. Going off the fibonacci numbers, we would like to see a second rally of support pick back up off the 0.786 level and take the asset beyond the 0.5 fib level at 17,000 Sats, which sits just above the strong resistance at 16,400 Sats, where we’re likely to see some early selling pressure.

From there we should expect a correction back to the 0.618 fib level before the 3rd wave of support begins to gather again for the next push.

In the current uptrend the Ichimoku indicator is still favouring a bullish continuation with the Tenken-Sen pulling away further from the Kijun-Sen line and the projected kumo cloud rising well alongside the price action; with a Span A support holding at 12,400 Sats.

Looking at key resistance levels on the 4hr charts, we can see early price targets at 13,500 Sats (50% return off the 9,000 Sats support) and 15,250 Sats (69.44% return). Depending on market sentiment over the next week we could see further price targets above at 16,600 Sats (84.44% return) and 20,000 Sats which would yield a whopping 122.22% return!

At the present time, trading volume is coming from a mix of exchanges against several pairings which tells us that support from the overall crypto community is returning to Bitcoin Cash and that the recent interest is not merely the result of exclusive trading from a particular exchange or country.
In the past 7 days BTC market dominance has also dipped below 40%, as other assets like BCH start to regain popularity again after a painfully bearish Q1 this year.

Will we see a revival of the rivalry between BCH and it’s older brother, Bitcoin again? Or will Bitcoin purists take back the market and push BTC back above $10,000 in the coming weeks? Stay tuned!


This article appeared first on Cryptovest

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.