Bitcoin Cash has seen its price increase significantly over the last 30 days. Since the beginning of February, BCH has reported gains of close to 100 percent and after seeing a steep uptrend materialise, a minor price correction for Bitcoin Cash’s price may take place in the coming week.
At the time of writing, BCH was trading at $757 with a market cap of over $13.2 billion, making it the ninth-largest crypt, according to CoinMarketCap’s list. The last 24-hours saw, what might possibly be, the start of the price reversal process as the cryptocurrency struggled to crack its immediate resistance level.
Bitcoin Cash 1-day chart
Source: BCH/USD, TradingView
Bitcoin Cash has been on a steady uptrend for over a month. However, the heavy turmoil that the coin has enjoyed over the past month could now be dropping. BCH has made a few attempts to crack the resistance barrier at $774, but it has yet to maintain a successful breach. This could cause a small price correction for Bitcoin Cash, and the coin may need the aid of its immediate support of $622 in the coming week to help stabilise its price.
BCH also seemed to enjoy a few other high levels of support at $539 and $472. However, considering the buoyant momentum in the broader crypto market, it is unlikely that the price will test these levels in the coming weeks.
Rationale
With Bitcoin Cash heading north for a long time, the RSI indicator, at press time, indicated a small dip in buyers’ interest as the RSI traced back out of the over-purchased zone. The MACD indicator experienced a bullish crossover at the beginning of the month, but the Signal line might catch up with the MACD line if the coin did not go beyond the $774 price point. In such a scenario, BCH may drop to a price level of $622.
In view of the fact that a small correction has already been made in the press, traders will benefit from a short position.
Important levels to watch out for
Resistance: $774
Support: $622, $539, $472
Entry: $692
Take Profit: $638
Stop Loss: $757
Risk/Reward: 0.83
Conclusion
Bitcoin Cash’s price may soon see a slight price correction. This is likely to happen if the coin fails to breach its immediate resistance level. In light of the slight dip in bullish momentum, this scenario is likely to play out in the coming week’s time and traders can take advantage of short positions since BCH is likely to head to its immediate support level.
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