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Bitcoin Cash closed in on a fourth consecutive green candle as buyer pressure increased. Volumes recently seen were likewise commensurate with levels recorded in early August, when BCH completed a nearly 90 percent run-up to a local high of $615. Furthermore, On Balance Volume was on a tear towards its May highs, indicating that buyers were on the move. These were unquestionably encouraging indicators in the long run.
BCH was trading at $674 at the time of writing, up 1% in the previous 24 hours.
Bitcoin Cash Daily Chart
As momentum favoured buyers, Bitcoin Cash traded above all three simple moving averages (20, 50, and 200). The $766-$800 range is likely to be targeted during the next week as buyers maintain their hold on the market. The $880 level is also noteworthy since a strong breakout would allow for a faster return to the May highs.
However, BCH must first overcome some short-term obstacles. The price has yet to close above the swing high of $715 set on August 15, where some selling pressure can be expected. Second, at the time of publication, the Visible Range noticed a high level of interest in BCH.
The alt needs to decisively close above the $675-mark to overcome this potential resistance zone. If sellers do trigger a market decline, BCH should hold above its 50-SMA (yellow) to keep short-sellers away from the market.
Despite recent advances, BCH’s indicators have yet to dominate critical sectors. The RSI was well within bullish-neutral region, while the Awesome Oscillator remained weak in the short term.
According to the Directional Movement Index, the market trend appeared to be shifting in favour of buyers. The ADX, on the other hand, remained static at 21. Any value less than 25 suggests a weak trend on either side.
Because BCH has yet to break through $675, the indicators were cautious in their predictions. If BCH fails to breach the above-mentioned price thresholds in the coming days, it may see a slight drop.
However, the underlying purchasing pressure acts as a safety nett, preventing a closure below the 50-SMA.