Bitcoin Cash price analysis: BCH/USD embraces temporary support; prime for gains towards $500
|- Bitcoin Cash encounters resistance slightly above $460 but declines are supported at $438.
- BCH/USD is likely to correct higher today; next resistance target is at $480.
Although Bitcoin Cash corrected lower towards the last weekend, it maintained levels higher than those on September 12. There was a break below the temporary support on Sunday 16 but the declines were protected below above $420. The buyers entered and a pullback followed above $460 but the price stalled on touching the trendline resistance.
Bitcoin Cash has canceled most of the intraday gains on Monday. Besides, it is exchanging at $450 after finding a temporary support at $438. Moreover, the 15-minutes 50 simple moving average is hindering upside movement at $453.2. Above this level, the month-long descending trendline is a critical resistance area.
For Bitcoin Cash to retrace higher, it must break from the trendline resistance and find a strong support above $460. Thereafter, the byers must push for more upside correction to $480 and eventually $500. On the other hand, the temporary support at $438 must not be broken to avoid another dip toward the primary support at $410 (previous lows).
Looking at the short-term chart, Bitcoin Cash is prime for gains as the stochastic heads into the overbought region. The MACD is slightly below $0.0 but advancing slowly to cross into the positive zone. Another intermediate support is highlighted at $420 if declines are extended below the temporary support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.