- 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.
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.
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.