Bitcoin Cash (BCH) crypto witnessed intense buying pressure over the past three days. The price action reflected a bullish reversal, and the BCH price was scaling toward the $350 mark.
The increase in trading volume by over 22% was a sign of conviction that bulls started accumulating and were looking for a channel breakout. For the past few weeks, the Bitcoin Cash price has continued to lose gains and capped inside a falling channel.
It has a strong support zone of around $300; a triple bottom formation was highlighted there. The current market structure reflects a bullish shift as buyers gained traction and tried to maintain their upper hand.
This week, the Bitcoin Cash price crossed the 20-day and 50-day EMA marks, reflecting aggressive buying pressure and investor speculation.
The $350-$360 region was a former resistance region since August. It was retested multiple times, but bulls failed to sustain there and faced rejection.
BCH Price Prediction: Roadblocks at $350
BCH price has been making lower lows since July, capturing the altcoin’s downtrend. However, it was worth noting that the previous support zone of $300 eased the drop for a while.
The technical perspective sheds more light on the BCH price recovery attempt. At press time, BCH price was trading at $340.50 with an intraday drop of over 0.20% over the last 24 hours.
Besides, the RSI retreated from the oversold region, indicating increased buying pressure. At press time, it was noted around 58. A reading above the midpoint 50 suggests that altcoin is gaining bullish momentum.
A look at the Fibonacci retracement levels adds more insights to the prediction. BCH crypto hovers around the 38.2% level and is eyeing to reach the 50% level, around $360.
Sean Mackey (@smack002) tweeted that if you bought BCH on January 23 at cycle lows, it would be up over 68% compared to ETH.
While the BCH token’s price rose by 6% in the last 48 hours, it had more to do with the broader market cues. However, the altcoin is turning bullish. A break and close above the $360 mark would validate the trend reversal.
Notably, the MACD indicator shows an incremental bullish view as the histogram turned green.
Technical Indicators Data | Source: Coinalyze
Furthermore, the Chaikin Money Flow Index (CMF) indicator reflects a positive value of 0.05, which implies that significant liquidity was entering the market.
Futures Market Data Outlook
Amidst the significant price uptick, the OI-weighted funding rates still favored short contracts, as traders anticipated more declines in the coming sessions. The funding rate was around 0.0074% at press time, reflecting a minor bearish outlook.
Funding Rates Data |Â Source: Coinglass
Meanwhile, the Open Interest (OI) data painted a different view. It dropped by 7.76% to $227.65 Million, replicating a long unwinding activity in the past 24 hours.
The immediate support zones were $335 and $330, whereas the upside hurdles were around $348 and $356.
