After having endured a significant price drop two days ago, Bitcoin Cash bounced back and is on a recovery run. The coin fell by close to 18 percent on 25 March; since then, the coin has been trying to regain its losses and move upwards on the charts.
At the time of writing, BCH was trading at $503.1 and registered a market capitalization of over $9.4 billion. The past 24-hours saw the coin’s price gain by over 5 percent and there seems to be enough bullish momentum in the BCH market to allow it a complete recovery and take it back above the $550 price range in the short term.
Bitcoin Cash 4-hour chart
Source: BCH/USD, TradingView
Bitcoin Cash’s price established a strong uptrend in the past 14-16 hour time frame. While there is strong resistance around the $552 price range, bullish momentum present in BCH’s market may allow it to breach this level in the coming days. However, if the trend were to once again see a reversal, then BCH may have to rely on its tried and tested support level at $474.7. There is also another support range at $424 but a move to such a level isn’t likely in the near term for the coin.
Rationale
The coin’s technical indicators concur and signal a short-term bullish outlook for BCH. MACD indicator has undergone a bullish crossover and there are no signs of a trend reversal. This implies that the price is likely to benefit in the near term and fuel its uptrend. RSI indicator is also quite promising as it now inches closer to the overbought zone and away from the neutral region.
Important levels to watch out for
Resistance: $552, $615
Support: $474, $424
Entry: $513
Take Profit: $558
Stop Loss: $468
Risk/Reward: 1.17
Conclusion
BCH’s price triggered a recovery run in the past day’s time and is likely to continue in the short term. The coin exhibited substantial bullish momentum that could result in BCH breaching the $552 price range in the coming days. However in the next few hours, if a trend reversal were to take place, BCH’s price is likely to stabilize around its immediate support at $474.
