Bitcoin Cash Price Analysis: BCH/USD nurtures momentum above $340, all eyes focus on $400

The bulls are back in action on Sunday after wallowing in selling pressure on Saturday. The majority of the major cryptos are in the green posting gains between 1% and 10% on the day. Bitcoin Cash is dancing 4% higher on the day following a bullish correction from $339.38 (opening value). The fourth-largest cryptocurrency grew exponentially towards $400 but formed a high around $365 before adjusting to $351 (market value).

Last week, Bitcoin Cash was flipped from the fourth spot on the market by its controversial Bitcoin SV. The latter surged massively to highs around $458 while Bitcoin Cash only managed to hit highs around $403. BSV market cap also corrected higher surpassing that of BCH. However, Bitcoin Cash has since reclaimed its position amid an ongoing Bitcoin SV sell-off.

Read more: Bitcoin SV plunges 42% from 2020 highs: Lawyer reveals Craig Wright has no private keys

At the time of writing, BCH is struggling to hold above $350 and push past the next resistance at $360. The bulls would like nothing more than to see the price back above $400. However, the sideways trending RSI suggests that rapid movements either side are unlikely in the short term. Therefore, I am more inclined to believe that BCH would hold above $350 while the upside capped at $360 in the near term until a proper technical picture develops.

BCH/USD 4-hour chart