Bitcoin Cash price analysis: Is this a bullish reversal?

Bitcoin Cash is up a subtle 0.72% on a daily basis and bulls push for a correction towards $500.
Bitcoin buyers have defended the support at $470 but find a support above $476 is key for higher upward movement.

Bitcoin cash exchange hands around $3,750 in December 2017. The digital asset like most other coins in the market has been limited below a long-term descending trendline since January 2018. BCH/USD made an attempted recovery from the mid-April into May where it traded above $1,700 but turned bearish short of $1,800. The daily chart shows that the assets have been losing momentum in the past few months with attempts to corrected higher thwarted by the bears prematurely.

At the time of writing Bitcoin Cash is up a subtle 0.72% on the day. The trend is bullish above $470 while the buyers have their eyes on $480. Last week the market suffered under heavy selling activity that saw both major and minor cryptocurrencies tank mercilessly. BCH/USD broke last month’s support at $470 after the lifeline support established at $500 was broken triggering a tailspin towards $450. However, the buyers took a pit stop at $460 and took refuge around $464 before embarking on an upside swing.

The staged recovery movement was not strong enough to overcome the pressure at the 200SMA (15’ chart) which is ranging marginally above the 50% Fib level of the last upwards swing at $494.91 and a downward swing of $458.08. There were slight corrections from this level but the buyers have defended the support at $470 assisted by the 50SMA (same chart).

An upside bullish reversal is underway at the moment, while Bitcoin Cash is trading at $470.50. Immediate resistance is the 38.2% Fibo at $472 but a critical level that is likely to culminate in a breakthrough to $500 is at $476 (both the above-mentioned 200SMA and the 50% Fibo).

BCH/USD 15’ chart

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