Disclaimer: The findings of the following article are the sole opinions of the writer and should not be taken as investment advice
The Bitcoin Cash [BCH] market noted two huge price drops in April. As the digital asset rallied to a peak of $1,219, a correction set in and dragged the value close to the support at $857. However, as the price recovered, it was hit by another bearish attack that pushed the price to another support level at $754.
After a brief period of consolidation, BCH was back trading at $934, at the time of press.
Bitcoin Cash [BCH]
Source: BCHUSD on TradingView
BCH’s 4-hour chart traced its journey in April and noted that the price was once again close to the resistance at $1,005. As the market pointed to strong bullish support, BCH may be able to re-visit the said resistance level.
Reasoning
After BCH recovered from the crash to $754, the volatility in the market also increased. However, it later reduced once consolidation began. As the price was once again witnessing an upwards push, the Bollinger Bands were diverging to underline the rise in volatility in the market. This rising price action could help push the price as close as $1,005.
The hike in buying pressure could be visible as the Relative strength index climbed to 64, close to the overbought zone. This value denoted that the buying pressure had increased as compared to the selling pressure, at press time. However, BCH had not yet hit the overbought zone.
Meanwhile, market momentum was gradually rising at the bull’s end, affirming the rising trend across the market.
Crucial levels to watch out for
Entry-level: $950
Take Profit: $1,022.09
Stop-level: $902.86
Risk to Reward: 1.49
Conclusion
If the trend sustains itself, the price of Bitcoin Cash [BCH] could hit the resistance level of $1,005. However, given its strong correlation with Bitcoin and Ethereum, it will be a long-term process as the market still projected strength.
