Bitcoin cash technical analysis: BCH/USD breaks out from flag formation

BCH/USD daily chart

After consolidating in a flag formation for three days, the price broke out upwards this Wednesday. The bulls managed to take the price up from $478.25 to $489.50. BCH/USD is also trending comfortably above the 200-day simple moving average (SMA 200), SMA 50 and SMA 20 curves. The relative strength index (RSI) indicator has moved into the overbought zone and trending around 70.25.

BCH/USD 4-hour chart

The 20-day Bollinger band in the 4-hour BCH/USD chart is widening, indicating increasing market volatility. The second last session found support on the SMA 20 curve and the upward trending line. That particular session also went above the upper curve of the band, which was immediately corrected by the bears in the latest session. The signal line is about to cross over the moving average convergence/divergence (MACD) line showing that market momentum has shifted from bearish to bullish.

BCH/USD hourly chart

BCH/USD hourly chart has to overcome resistance at $492. If the bulls can overcome that, then they will be able to take the price up to $500. The last time BCH/USD was in this zone was back in November 2018. Looking closely inside the rectangle, you will notice that the SMA 20 and SMA 50 curve were pretty much trending on top of each other, with the latter laying on top of the former. However, the SMA 20 curve then gathered steam and managed to move over the SMA 50 curve. The Elliot oscillator has had nine straight bullish sessions.

Key Levels