Disclaimer: The findings of the following analysis attempt to foresee Bitcoin Cash’s price movements until the second week of August
Bitcoin Cash’s price has registered significant gains over the last 7 days. In fact, the fork coin has seen its trading price appreciate by over 33 percent since 25 July. This was an interesting development as, since the 12 March crash, Bitcoin Cash’s price action had been confined between the $215 and $269 price levels. However, as mentioned, a much-needed rally took place this week.
Source: CoinMetrics
Altcoins, in general, always tend to closely mimic the price action of Bitcoin. This was the case when the king coin went past the coveted $11k mark too, with Bitcoin Cash tagging along as well. In fact, according to data provided by CoinMetrics, BTC-BCH correlation was rising at the time of writing, after having fallen over the past month.
At press time, Bitcoin Cash was being traded at $309, with the cryptocurrency occupying the fifth spot on CoinMarketCap’s charts with a market cap of $5.6 billion. Over the past 24 hours, BCH’s price had registered a price hike of 6.3 percent and was noting a 24-hour trading volume of $2.1 billion.
Bitcoin Cash 1-day chart
Source: BCH/USD, TradingView
According to the crypto’s daily charts, Bitcoin Cash’s price had broken out of the descending channel formation. The price was confined in the formation right from April, and as expected, an upward breakout took place enabling BCH’s trading price to go past and remain above the $300 mark. As the price continued on the uptrend, in the coming week, it is likely to hit the immediate resistance at $341 – a price point BCH last visited in the early days of March this year.
In the coming weeks, if the resistance at $341 holds, Bitcoin Cash may have to endure yet another price correction. In such a scenario, BCH may see its price drop to its next strong support at $265. In the unlikely eventuality of strong bearish sentiment for BCH, the coin can also rely on two more supports at $236 and $215.
Source: BCH/USD, TradingView
As per the indicators for BCH’s price, the MACD line had undergone a bullish crossover a week ago and a reversal didn’t seem like a possibility at press time. The RSI indicator also signaled a similar sentiment as it found itself well in the overbought zone.
Conclusion
Bitcoin Cash is likely to try and test the resistance at $341 in the coming week after having broken out of its previous price formation. In case the resistance holds strong, in the first two weeks of August, BCH is likely to note a correction. However, according to the indicators, the price might just sustain the current uptrend on the charts.
