Bitcoin Cash price analysis: BCH/USD inverted head-and-shoulders blasts price through $340 hurdle

  • The 100 SMA support is instrumental to the ongoing 3.4% recovery on the day.
  • The full stochastic oscillator shows the bullish nature of BCH in the near-term.

Bitcoin Cash has insanely refused to follow the generally bearish trend across the market. The one-hour chart displays a cryptocurrency that is proving the ability to recover from the lows reached last week. The rock-solid support at $300 -305 was instrumental to the correction during the weekend sessions. However, the sensational move above the 50 Simple Moving Average and the 100 SMA 1-hour stopped shy of $345.

Also read: Crypto analyst: Bitcoin is going to $100,000

A quick comeback by the sellers pressed Bitcoin Cash through the support at $335 and $330. Fortunately, $325 was reliable enough to put a stop to the declines. Besides, the 100 SMA support is instrumental to the ongoing 3.4% recovery on the day. Moreover, reaction to the inverted head-and-shoulders pattern has immensely aided in the impressive gains.

Meanwhile, Bitcoin Cash continues to make strives above the 50 SMA in addition to stepping above $340. The widening gap between the 100 SMA and the 50 SMA hints rising buying influence. The full stochastic oscillator currently in the oversold shows the bullish nature of BCH. However, traders should be alert for a retreat under 70 which is likely to signal a reversal. The various support areas to keep in mind would be the short-term $335, $330, $320 and the major support at $300 - $305.

BCH/USD 1-hour chart

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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD in a precarious position as lack of healthy support levels can see it drop back below $7,000

BTC/USD bulls have come out on top so far this Wednesday, as the price has gone up from $7,218.50 to $7,253.25. This follows a bearish Tuesday wherein the price dropped from $7,340 to $7,218.50. The daily confluence detector shows ...

More Bitcoin News

EOS/USD drops amidst growing centralization concerns

EOS/USD has had an interesting December so far, to say the least. While its price has moved pretty sluggishly, there are a lot of pieces moving in the background. Let’s take a closer look at all these moving parts and see how the price is acting in different time frames. 

More EOS News

Tron Price Analysis: TRX/USD defends $0140 support for the second time

Tron has been disintegrating since the highs formed in November at $0.0230. The buyers tried to nurse initial losses in a range between $0.0180 and $0.0200 but failed. 

More Tron News

Bitcoin Cash price analysis: 20-day Bollinger jaw narrows considerably as market volatility goes down

BCH/USD has dropped from $206.65 to $206 in this early hours of Wednesday and is on course to chart its third straight bearish day. The hourly breakdown of Tue ...

More Bitcoin Cash News


Bitcoin Weekly Forecast: It's all about whales again

On the cryptocurrency market, regulators, governments and central bankers and other big names like that are inferior to whales when it comes to generating trends and price movements.

Read the weekly forecast