Key Highlights:
Further increase in price is certain;
bulls were in control of the BCH market;
price pullback is inevitable.
BCH/USD Price Long-term Trend: Bullish
Resistance zone: $655, $788, $919
Support zone: $568, $501, $410
BCH/USD resume bullish trend. The cryptocurrency has been on the downtrend movement since May 7th, immediately after the Doji candle formation followed by the bearish engulfing candle. The 21-day EMA also crossed the 50-day EMA downside to confirm the bearish trend. Since then, the bears were in control of the bitcoin Cash market. The coin found its lower low at $410 support zone on October 31.
The bears lose pressure in this zone and the bulls gained momentum. The strong bullish pressure after the Doji formation at $410 in the support zone signaled the bulls returned. Confirmation to the bulls’ takeover was seen as the next daily candle closed as bullish engulfing above the two EMAs. Increased bullish momentum led to the breakup of the former resistance zones of $501 and $568.
BCH price is above the two EMAs and 21-day EMA is crossing the 50-day EMA upside to confirm the bulls’ pressure and certainty of BCH price increase. Meanwhile, RSI period 14 is at the 80 levels ( overbought zone ) and its signal line point down indicates sell signal which may be a pullback which is necessary for the market correction as this will guarantee uptrend continuation.
BCH/USD Price Medium-term Trend: Bullish
On the 4-Hour chart, BCH is in the bullish trend. The bulls came into the market on November 2, with full force, this is confirmed by the formation of massive strong bullish candles which made the price to go up, broke the former resistance zones of $501 and $508.
BCH price is above the 21-day EMA and 50-day EMA which is an indication of a bullish trend. The RSI period 14 is at 80 levels (overbought zone) and its signal line points toward south connote sell signal which may be a pullback.
