Bitcoin Cash Analysis: BCHUSD Might Correct Towards $530 After 20% Hike

November 05, 2018 | AtoZ Markets

Crypto markets have seen a bullish movement today, with most of the top 10 coins by market cap marking significant growth. Bitcoin Cash has surged almost 20 percent since the last few days. 

The fourth largest cryptocurrency by market capitalization has grown sharply from $473 at the beginning of the day to as high as $573 mark, which is the highest trading point of the coin over the previous month.

According to the recent announcement by of the upcoming Hark Fork of BCH coin, Bitcoin Cash surged 20 Percent in the wake of the Hard Fork news. 

Bitcoin Cash Technical Analysis

According to weekly charts, the BCHUSD pair traded higher and broke numerous resistances close to the $550 zone. The pair traded near the strong resistances and framed a high at $589. After some time, the coin began to move downwards and declined below $560 levels. There was a break beneath the 23.6% Fibonacci retracement level of the ongoing wave from the $456 low to $489 high.

On the daily chart, the 100 SMA line is below the 200 SMA line which indicates that the path of least resistance is towards the downward direction. Thus, traders might see sell-offs in the upcoming days.

There are numerous supports on the drawback close to $520 mark. Most importantly, there is a noteworthy bullish pattern line framed with support at $520 on the hourly chart of the Bitcoin Cash against USD. The pattern line is near the 50% Fibonacci retracement level of the ongoing wave from the $456 low to $489 high. In this way, if the pair keeps on moving down, it is probably going to discover bearish trend which is close to $520 mark.

The price of the coin is obviously trending upwards, however a small correction towards $530-$540 levels might be seen in upcoming days. On the upside, if the coin remains supported at this price point than it could open doors for the upward move towards $600 levels.

Bitcoin Cash Daily Pivot Points

The price of Bitcoin Cash has a strong weekly support near $505 and resistance near $615 levels.

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