FxWirePro: BCH/USD bulls develop ascending channel to hit fresh 6-month highs – Wise to capture corrective dips to build longs

Bitcoin cash (BCHUSD) has formed hammer pattern at $426.63 levels that prompt buying sentiments, consequently, bulls take-off rallies above DMAs, and ascending channel has been formed in the minor trend.

Well, in this journey, Bitcoin cash price rallied from the lows of $368 levels towards levels of $482 against the US Dollar which is the key channel resistance, the price failed at that juncture and recently corrected lower below $462 levels where it is taking support at 7DMAs.

Anyways, for now, more upswings seem to be likely upon bullish DMA & MACD crossovers, while both the leading oscillators (RSI & Stochastic curves) substantiate buying momentum.

On a broader perspective, the pair has formed bullish engulfing patterns take off rallies above DMAs to hit fresh 6-months highs (refer weekly plotting), while both leading & lagging indicators on this time frame also are in conformity to the upswings, bullish EMA & MACD crossovers indicate the prevailing uptrend most likely to prolong.

Overall, by observing at the above technical rationale, it is clearly understood that BCHUSD is generating renewed opportunities for fresh long build-ups for the targets up to $540 levels as the price remains well above $461.322 (i.e. 7-DMA levels), it could extend bullish rallies upon the strength and the intensified buying momentum signaled by RSI and stochastic curves.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 110 levels (which is highly bullish), while hourly USD spot index was at 64 (bullish) while articulating (at 10:42 GMT).

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex