Bitcoin cash technical analysis: BCH/USD faces short-term correction

BCH/USD daily chart

• BCH/USD went up from $457 to $466.85 in the early hours of Thursday.
• Bitcoin cash enjoyed a bullish day this Wednesday as well when it went up from $433.85 to $457.
• The price is trending in an upwards channel formation.
• The price has gone through a pattern of consolidation and bullish breakout.
• The price is trending above the 200-day simple moving average (SMA 200), SMA 50 and SMA 20 curves.
• The 20-day Bollinger band is narrowing, which indicates lower market volatility.
• The latest session has gone above the upper curve of the Bollinger band, which indicates that it is over-valued and may face correction.
• The relative strength index (RSI) indicator is trending in the overbought zone around 73.5.

BCH/USD 4-hour chart

• The 4-hour BCH/USD market is trending above the red cloud of the Ichimoku indicator.
• The 4-hour price found support on the upward trending line and at $457.25
• The upcoming market sentiment is bearish as per the Ichimoku indicator.
• The Elliot oscillator has had five bullish sessions in a row with increasing intensity.
• The moving average convergence/divergence (MACD) indicator shows four bullish sessions in a row of increasing intensity.

BCH/USD hourly chart

• The BCH/USD formed a triangle formation, from which the market has had a bullish breakout.
• The hourly price is trending above the SMA 200, SMA 50 and SMA 20 curves.
• The SMA 20 curve has taken a turn and is now acting as market support.
• The bulls found resistance at $474.50 and then crashed down to $466.85.
• The moving average convergence/divergence (MACD) indicator shows that the signal line was about to converge with the MACD line before they suddenly diverged. It shows that bullish momentum was decreasing before it suddenly went up.

Key levels