Bitcoin Cash (BCH) has recently emerged as an intriguing opportunity for short-term traders and investors. With its price showing upward momentum after establishing a local low at $204, BCH enthusiasts are eyeing a potential surge to levels around $225 and $228. This bullish sentiment is supported by technical indicators that suggest a favourable outlook for the popular forked coin.
Bitcoin Cash’s recent price action indicates a promising upward trend, with its value allegedly poised to climb higher. The local low at $204 has marked a turning point, potentially setting the stage for BCH to reach $225 and $228. These levels represent crucial thresholds where buy-side liquidity is expected to accumulate, further boosting BCH’s bullish prospects.
The prevailing sentiment surrounding Bitcoin Cash is predominantly bullish, making it an attractive option for interested investors. Analysts advise entering the trade at the current price of $212 or waiting for a potential dip to $197, both of which present favourable entry points.
The Relative Strength Index (RSI) supports this optimistic outlook, which has crossed above the mean level on the daily chart. Moreover, on the 12-hour chart, the RSI has bounced back above 50 after a brief dip below, signifying a resurgence of bullish momentum. The Awesome Oscillator (AO) also hints at a reset near the zero level, further strengthening the case for a bullish trend.
While the short-term outlook for Bitcoin Cash appears promising, it’s essential to consider potential downside risks. Failure to maintain support above the $197 level could indicate a continuation of the current downtrend.
Should a decisive daily candlestick close below this crucial support level occur, it would invalidate the bullish thesis and potentially lead to the formation of a lower low. In such a scenario, Bitcoin Cash may target sell-side liquidity below $176, introducing a more bearish perspective.
Currently, Bitcoin Cash is trading at $213.46, reflecting a 3.43% increase in the last 24 hours. The coin holds the 18th position on CoinMarketCap, with a market cap of $4,165,584,570. Its circulating supply stands at 19,514,938 BCH coins, with a maximum supply of 21,000,000 BCH coins.
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