11.02.202112:27 Forex Analysis & Reviews: Bitcoin Cash to extend rally

Bitcoin Cash is recouping losses after yesterday's drop in the price. The quote has reached 508.94 and is now testing this level. In terms of the technical analysis, a further direction of BTH/USD will depend on whether the price will be able to consolidate above 508.94.

Thus, the next upward target will be the strong resistance level of 538.35. In fact, the price retested this level three times. Nevertheless, its attempts to break through the resistance level failed. Therefore, if the quote consolidates above the horizontal level of 508.94, it will possibly reach 538.35. Otherwise, the pair will reverse. In such a cese, the downward targets will be seen at 489.41 and 465.48.

Bulls should look for the entry point on the H1 chart. According to the hourly time frame, the price is likely to consolidate above the support level of 508.94. As soon as the pair breaks through the highs of the previous three hourly candlesticks, the possibility of a false breakout will decrease. At the same time, those who want to enter long should place a Stop Loss below the mirror level of 502.27. Meanwhile, a Take Profit should be set slightly below the resistance level of 538.35. In this case, the profit-risk balance will be more or less acceptable. However, if the price approaches the levels where the shadows of the previous candlesticks begin, one should move the Stop Loss to break even.