Disclaimer: The findings of the following article are solely the views of the writer and should not be regarded as investment advice
Bitcoin Cash has seen its price rise steadily on the charts. This bullish momentum can be attributed to its correlation with Bitcoin and with the latter passing a few key price levels above $ 20ka a few days ago, with BCH raking up the rewards for the same as well. However, within an ascending channel, the result of a cut-off usually involves a price correction.
At press time, Bitcoin Cash was trading at $ 312 with a market cap of $ 5.8 billion. In the past week, the cryptocurrency saw a price surge of over 18 percent, with BCH having a 24-hour trading volume of $ 3.5 billion.
Bitcoin Cash 1-hour chart
According to Bitcoin Cash’s 1-hour chart, the coin continued to trade within the limits of its immediate resistance and support levels. Over the past few days, Bitcoin Cash’s pricing action had taken up an ascending channel formation. By convention, an ascending channel ends with a bearish outburst and if the BCH price exits the channel, a minor correction can be expected.
Over the last 24 hours, the coin has experienced considerable resistance around the $ 320 price level. However, if the price suffered a correction, BCH had two strong support levels at $ 305 and $ 298. In the short term , should the price fall, these two levels will be key to stabilizing BCH’s trading price.
The Bitcoin Cash price seemed likely to see minor corrections once it breaks out of press time formation. However, in the short term ie in the next 24 hours, the coin may even trade within the confines of the ascending channel. The RSI indicator was still in the neutral zone, but was slowly going towards the over-thinking zone.
The MACD indicator received a bullish intersection earlier in the day, however, one cannot rule out reversal as the Signal line is approaching the MACD line.
Resistance: $ 320, $ 326
Support: $ 305, $ 298
Admission: $ 318
Take Profit: $ 306
Stop Loss: $ 324
In the short term, Bitcoin Cash can still stay within the ascending channel. However, if a price correction were to occur, the cryptocurrency might see a slight drop to its direct support level of $ 305. Unless there are dramatic changes in the crypto market in the next 24-48 hours, price BCH likely to remain in a similar range with minor corrections.