Bitcoin Cash Bullish Structure Shift

Bitcoin Cash was on the verge of seeing a bullish structure shift.

Traders looking to go short could look for opportunities to enter above the $400 mark.

Bitcoin Cash (BCH) has rallied 21% for the day, and a daily session close above $351 would mark a bullish structure shift.

The price of BCH was $387 at press time, indicating a good chance of a bullish shift in the daily structure.

The BTC hard fork had a +0.8 correlation with Dogecoin (DOGE) and Chainlink (LINK), and only +0.71 with Bitcoin (BTC).

The recent price action was backed by strong demand and accompanied by a rising BTC price. Could Bitcoin Cash reclaim the psychological $400 level?

Key Resistance Zone Overhead

The social volume remained steady over the past three weeks, recovering from a mid-February dip. Additionally, daily active addresses surged last week.

The fall to local lows might have triggered increased on-chain selling. Similarly, Sunday’s bounce coincided with heightened on-chain activity.

The In/Out of the Money around price indicated that the $408-$422 range was a significant resistance zone. Beyond that, the area just below the $450 mark would hinder the bullish advance.

Conversely, the $329-$342 range exhibited a large volume of purchases, making it likely to serve as firm support if retested.

The price action chart displayed a bullish outlook following a market structure shift (orange), expected to occur if the 1-day trading session closes above $351.

Volume bars indicated increased trading activity alongside the price movement, a further sign of bullish conviction.

The $400 level (white) represented the lower low established in January, making it easier to identify the bearish order block (red) at $425.

This zone also served as support in December and was near the 61.8% retracement level based on the drop from $500 to $275.

Traders might expect a rejection from this order block.

Despite the sub-structure nearing a bullish shift, the swing structure remained bearish, suggesting that the $414-$425 range could be a viable area for short entries.

Meanwhile, a breakout above $452 would negate the bearish argument.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion