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Bitcoin Cash Price Analysis: $917 at 50-day SMA is the next strong target for the upcoming BCH rally

TL;DR Breakdown

  • Bitcoin cash(BCH) has gained over 6% over the last 24-hours
  • The coin opened the daily chart at $623
  • The daily range ($618 – $640) suggests moderate volatility 

Bitcoin Cash Price Analysis: General price overview

Bitcoin cash(BCH) has gained over 6% over the last 24-hours to trade at $628 against the US dollar. The break above key resistance at $600 is attributed to El Salvador’s approval for Bitcoin as legal tender. This resulted in BTC shooting from $31,000 to $36,000 on yesterday’s 24-hour chart. Bringing even more attention to the almost similar named Bitcoin Cash. Recently, there has been a crackdown on cryptocurrency activities in China, and the latest one being the blocking of all leading cryptocurrency exchanges from appearing on search engines. As a result, the majority of cryptocurrencies, including Bitcoin Cash, were slashed from their rallies and forced into a downswing. As a result, BCH dropped from $738 to a 2-month low of $558  on May 24th. 

When applied to Bitcoin Cash’s monthly growth rate estimate, long-term fundamentals estimate the coin could hit $915 one year from now. So far, the coin has gained 80% since the beginning of 2021. Averaging monthly gains of 16%. Maintaining such a healthy growth rate might have coin rise to $1,500 by the end of the year.

During press time, the currency is hovering between $620 and $627. The daily range suggests moderate volatility and lies between an intraday low of $622 and an intraday high of $640. 

Bitcoin Cash price movement in the last 24-hours

Bitcoin Cash (BCH)  buyers broke above $620 on yesterday’s daily chart, giving the bulls an upper hand on the trendline.  The coin opened the daily chart at $623, activated a long green candlestick that fell into a rising wedge to ending at the day’s high of $640. Bulls have violently defended this week’s critical support zone between $500 and $468 and are now attempting to push their way towards the 50-day simple moving average at $917. 

(Source: Tradeview)

Bitcoin Cash 4-hour price chart

The bears are attempting to snatch control from the bulls at around $620. After Bitcoin cash price action has broken below the lower limits of a double bottom that formed across the 4-hour chart. The $624 trendline supported the two bottoms. BCH has, however, crashed below this trendline at the time of writing and set an intraday low of $618 on the 1-hour chart. Presently, Bitcoin cash is going for $620 per piece. 

Sellers want the price to reverse from the current uptrend line and down into critical support at $468. The accumulation of selling pressure at this point is likely to extend a bitcoin cash price decline to the lower support at $400. 

(Source: Tradeview)

Bitcoin Cash price analysis conclusion

Microstrategy promising to invest more million dollars into Bitcoin and El Salvador’s bill are the latest positive news in the cryptocurrency industry. Both of which are likely to shape a bullish outlook for the medium-term position of digital currencies. The sentiments could result in Bitcoin Cash building up more momentum for the next target of $917 at the 50-day SMA.

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