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Bitcoin Cash has seen heavy bullish traction since the last week of March, with BCH exhibiting a consistent uptrend that has resulted in a price increase of more than 120 percent. However, some of BCH’s upward momentum has been halted in the last 24 hours, with the altcoin coming into contact with a high resistance stage.
Bitcoin Cash was valued at $905 at the time of publishing, with a reported market capitalisation of more than $17 billion, making it the market’s 11th largest cryptocurrency. BCH had a $6.5 billion 24-hour trading rate, with its price rising by more than 47 percent in the last week alone.
Bitcoin Cash 1-day chart
Bitcoin Cash’s uptrend has finally encountered some resistance about the $984-level, and if the coin struggles to break through this range in the next 24 hours, a pattern turnaround cannot be ruled out for BCH in the coming week. In such a case, the immediate support level of $801 may be the goal. There was still good support in the $701-price band, but such a sharp decline appeared impossible considering the current market situation.
If the immediate resistance holds, traders will gain from long positions and profit around the $800 mark.
Though BCH’s chart prospects have been bullish for over two weeks, a pattern reversal could be in the works. The coin’s technical metrics, such as the MACD and RSI, are all positive in the short term. However, a closer look at how the market has reacted will provide us with a better view of what to expect in the next 7 days.
At press time, the RSI was well into the overbought sector, and oddly, it had last occupied such a stage on February 21. The next day, the altcoin saw a major price reversal, which negated all of its bullish momentum.
The MACD predictor, on the other hand, crossed over to the bullish side. At the time of publication, a turnaround to a bearish crossover did not seem to be inevitable.
Important levels to watch out for
Entry point: $886
Stop loss: $968
Take profit: $811
Risk/Reward Ratio: 0.91
If the immediate resistance is not broken in the coming day, Bitcoin Cash will experience a minor pattern reversal, resulting in a price correction. In such a case, the altcoin may rise to $800 in the coming week, providing traders with short positions with an opportunity to benefit.