Bitcoin Cash price is looking to strengthen above $550 as bulls target a breakout towards $640
Bitcoin Cash (BCH) price has been consolidating within an ascending triangle pattern, signaling further gains.
If this happens, Bitcoin Cash could see a significant upside move above $550. Buyers might then aim at the main resistance at $640 before attempting to breach the next barrier at $750. This could leave bulls faced at prices last seen in July 2018.
The likely upside for Bitcoin Cash coincides with a similar bounce for Bitcoin, which is trading around $55,420 after it hit resistance near $57.3k. The BCH/USD pair is changing hands around $538, about 1.2% up on the day.
Bitcoin Cash price analysis
A slight sell-off has pushed BCH lower, with bulls retreating to support near $530. While the setback could derail bulls’ plans for a short-term rally, the upside could resume if BCH/USD recovers above $550 and re-energised bulls establish control above the resistance line of the ascending triangle.
As the daily chart shows, buyers need to retake control after showing indecisiveness during the previous session. This allows bears to move in and cap the upside near the apex barrier of the ascending triangle.
If buyers hold onto gains above the 20-day EMA ($535), increased buying pressure could push Bitcoin Cash’s price past immediate resistance (breakout point) at $565. This will allow for a retest of the $600 level, with the initial target in the projected uptrend being $640.
A successful breach of this line would bring $680 into focus, with the next target marked as $750. Note that the latter move depends on whether the volatility would carry enough momentum to climb to this second target.
On the flip side, a reversal could strengthen if bears succeed in keeping BCH price below the 20-day EMA. The prospect of BCH seeing minor losses is suggested by the weak MACD and RSI below the midpoint.
Dipping below the rising trend line would see prices fall to lows of $500, before a bout of panic selling sets in to send prices near the horizontal support line near $460.