Since BCH is trading at around USD 340, there should be higher highs before thinking of a significant rally. The bulls might drive the price higher, but only breaking through the resistance at USD 388 would confirm their dominance.
Despite its relatively low transaction volume per second, Bitcoin (BTC) remains the most popular cryptocurrency. In 2017, Bitcoin Cash (BCH) emerged as a solution to that issue, offering cheaper and faster payments.
BTC has a block limit of 1 megabyte (MB) and can process around seven transactions per second. The block size of BCH has gone from 8 MB to 32 MB, which allows for over 100 transactions per second.
Amid a significant general correction in the crypto market, the price of Bitcoin Cash recently rose sharply. The following analysis will help better understand its behavior and predict where it may head next.
BCH is trading at around USD 340 and has accumulated a 1.2% gain over the last 24 hours. Its trading volume is above USD 1.22 billion, and its market capitalization is about USD 6.47 billion. It occupies 25th place in the cryptocurrency ranking, according to CoinGecko.
The Monthly Technical Analysis of the Price of BCH
The monthly BCH/USD chart shows that the recent rally is irrelevant, as there is a dominant medium-/long-term bearish strength.
After the price hit a USD 1,642 high in 2021, a significant correction has moved it by almost 80% to the downside.
Since BCH is currently worth around USD 340, its trend has become bearish. Before thinking of a significant rally, there should first be increasingly high highs on the monthly chart.
The price crosses the 8-month EMA and 18-month SMA to the downside, and those indicators may serve as dynamic resistances.
Crucial Price Levels for BCH in the Short/Medium Term
The weekly chart shows that the price of Bitcoin Cash looks a little more bullish. It has sought to avoid losing a short-/medium-term attempt of bullish transition.
After generating demand at USD 271, the BCH price started reaching increasingly high lows. However, resistance at USD 388 hampered it, suggesting that the bullish attempt is just a sideways range before dropping further.
Even though there is a dominant bearish bias, the bulls might drive the price higher in the short term. However, it is only a matter of time to see where Bitcoin Cash will head next.
Breaking through the resistance at USD 388 would confirm that a significant rally will occur. If that did not happen, it would be more likely to breach the support at USD 271, allowing for sales of at least USD 210.
On its part, Bitcoin is trading at around USD 40,471 and has accumulated a 1.4% gain over the last 24 hours. Its trading volume is above USD 22.88 billion, and its market capitalization is about USD 769.08 billion.
By Alexander Salazar
