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Bitcoin cash price caught a fresh bid wave today, reaching a nine-day high of $373.
At press time, the bitcoin cash-U.S. dollar (BCH/USD) exchange rate is trading at $346 levels. The relatively new cryptocurrency has gained 4.12 percent in the last 24 hours, as per CoinMarketCap.
Still, the cryptocurrency has been restricted to a narrow range around $330 in the last two weeks, with only occasional spikes above $350. Meanwhile, the downside was capped below $300 levels.
However, today’s price gains look sustainable as trading volumes are on the rise. Notably, the rally to $350 levels on Thursday was backed by a 54 percent boost in volume, according to CoinMarketCap data.
Once again, it seems gains are being fueled by a surge in South Korean trading – volumes on Bithumb (which offers a BCH/KRW pair) are up 42 percent.
So, will BCH build momentum to retake $400? The price action analysis puts the odds of a rally to $400 and beyond above 50 percent.
The above chart shows:
- Prices formed a base around $300 and are currently trading at the descending trend line.
- Repeated failure on the part of the bears to keep prices below $300 yielded a rally to $370 levels.
- The money flow index (MFI) is bullish and sloping upwards, adding credence to the bullish price action.
- An end-of-day close above the descending trend line is likely and would signal that the sell-off from the record high of $970 has ended near $300.
- If the bullish trend line break is confirmed, prices could rise to $484 (Sep. 28 high) in the short-run.
- On the downside, only a move below $300 would signal bullish-to-bearish trend change.
Clock image via Shutterstock