Bitcoin Cash is showing renewed strength in the market this week, up a further 2% against the USD today and showing promising signs of a bullish revival. Trading volumes have also shown gains, almost doubling since July 15th as investor confidence and the overall crypto market improves.
Behind closed doors, however, there has been talk that a rift has come between BCH developers, divided by a new pre-consensus development put forward by Bitcoin ABC lead developer Amaury Séchet. While many BCH miners and developers have shown support for this newly proposed direction, others have adamantly rejected the idea. Among this latter group most notably is the self-proclaimed Satoshi Nakamoto himself, Craig Wright, who expressed his firm opposition against those in favor earlier last week, posting an ultimatum on Twitter to threaten BCH developers.
For now, the price action remains unaffected by this surfacing debate, but could be something to watch out for as this forecasted bull market progresses.
Looking at the 2hr BCH/USD chart, we can see that candles have already begun lifting off the base support at $680, after a three-week-long trading hiatus.
During the opening bull run, the price action was able to find the 0.236 fib level at $885 pretty comfortably with little resistance along the way. At this stage, however, the asset became overbought on the RSI indicator and bearish opposition was able to overcome the early uptrending momentum. Now that BCH has had time to collect after the correction, we can see that a second wave of bullish support is already underway.
At the time of writing, rising candles were consolidating against the highlighted resistance area (red rectangle) inside the 0.0 and 0.236 fib channel, at $820, but just experienced a sudden sell-off. This is likely to be just a temporary sell-off from a substantially large investor and should recover back to the red area soon off the back of the rising momentum.
Once BCH crosses above $820, it will also mean a convergence above the 500 EMA (yellow) too, which signals a likely continuation back towards the 0.236 fib level in the short-term. Once the 50 and 200 EMA lines similarly converge over this line, then we will have an even stronger confirmation of this projection.
Other bullish signals come from,
- MACD passing above the signal line for the first time since late May;
- Candles passing through the resisting Kumo cloud on the Ichimoku indicator, with a positive T/K crossing;
- A bullish convergence over the zero line on the Chaikin Money Flow indicator.
Bitcoin Cash (BCH) Price Prediction
All ROI’s are set from the $790 mark where the asset is currently priced (approximately)
Price Target 1: Upon breaking through the $820 area, it is likely that BCH will continue up towards the 0.236 fib level where it will meet strong resistance (12.66% ROI).
Price Target 2: From here it’s likely that the price action will correct back towards the top of the red zone at $840, where it will find support (6.32% ROI).
Price Target 3: Once bulls have rested, we should expect a second run to retest the 0.236 fib level where it could break through towards the $915 (15.82% ROI) or fail for a second time and correct back down again.
This article appeared first on Cryptovest
