Bitcoin Cash price must defend crucial support level for another leg up to $600 – Confluence Detector
- Bitcoin cash price had a major spike to $629 on January 10 before a significant pullback.
- BCH bulls look for another leg up but must defend the 26-EMA support level on the daily chart.
Bitcoin Cash saw a massive 150% bull rally that started on December 2020 and peaked at $629 on January 10. The digital asset has experienced a healthy correction since then and aims for a new higher high.
Bitcoin Cash price can rise to $600 again
BCH is currently trading at $488 and must defend a crucial support level at $450, which is the 26-EMA on the daily chart. This moving average has served as a strong support point since December 25, 2020.
BCH/USD daily chart
According to the In/Out of the Money Around Price (IOMAP) chart, the most significant resistance area for BCH is located between $498 and $511, which means that a breakout above this point would drive Bitcoin Cash price towards the target of $600.
BCH IOMAP chart
At the same time, the Confluence Detector shows a stiff support level located at $487, where several indicators converge, including the 10-SMA on the 15-minute chart, the 5-SMA on the hourly chart, the 38.2% Fibonacci level on the weekly chart and finally the middle Bollinger band on the 15-minute chart.
BCH Confluences
On the way up we can find a significant resistance point at $480, which is the Pivot Point 1 Day S1 and more barriers above $493 with the 50-SMA on the 15-minute chart, the 200-SMA on the hourly chart and the previous 4-hour high.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
