Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Bitcoin Cash has seen its price rise dramatically over the past 30 days. Since the start of February, BCH has noted gains of close to 100 percent and after having seen a steep uptrend materialize, the coming week may hold a minor price correction for Bitcoin Cash’s price.
At the time of writing, BCH was being traded at $757 with a market cap of over $13.2 billion, making it the ninth-largest crypto, according to CoinMarketCap’s list. The past 24-hours saw, what could possibly be, the start of the price correction phase as the cryptocurrency failed to breach its immediate resistance level.
Bitcoin Cash 1-day chart
Source: BCH/USD, TradingView
Bitcoin Cash has been on a steady uptrend for over a month now. However, the strong bullishness the coin has enjoyed over the course of the past month may be falling now. BCH made a few attempts to breach the resistance level at $774, but it is yet to sustain a successful breach. This may trigger a minor price correction for Bitcoin Cash and the coin may need the help of its immediate support at $622 in the coming week to help stabilize its price.
BCH also seemed to enjoy a few other strong levels of support at $539 and $472. However, given the bullish momentum in the larger crypto-market, it is unlikely that the price will test these levels in the coming weeks.
Rationale
With Bitcoin Cash trending north for a long time, the RSI indicator, at press time, was signalling a slight dip in buyers’ interest as the RSI was retracing out of the overbought zone. The MACD indicator underwent a bullish crossover at the start of the month, however, the Signal line might catch up with the MACD line if the coin fails to go past the $774-price range. In such a case, BCH may drop to the $622-price level.
Given the fact that a slight correction was already in the works at press time, traders can benefit from a short position.
Important levels to watch out for
Resistance: $774
Support: $622, $539, $472
Entry: $692
Take Profit: $638
Stop Loss: $757
Risk/Reward: 0.83
Conclusion
Bitcoin Cash’s price may soon see a slight price correction. This is likely to happen if the coin fails to breach its immediate resistance level. In light of the slight dip in bullish momentum, this scenario is likely to play out in the coming week’s time and traders can take advantage of short positions since BCH is likely to head to its immediate support level.
