Bitcoin cash price caught a fresh bid wave today, reaching a nine-day high of $373.
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
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Interested in offering your expertise or insights to our reporting? Contact us at [email protected].
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Published at Fri, 27 Oct 2017 14:35:02 +0000