Bitcoin Cash Rallies 7%, More Upsides Likely If BCH Clears 100 SMA

Bitcoin cash price rallied over 6% and it broke the $230 and $235 resistance levels against the US Dollar. BCH is likely to continue higher towards $250 if it clears the 100 SMA (H4).

  • Bitcoin cash price is gaining momentum above the $235 resistance level against the US Dollar.
  • The price is currently facing hurdles near $240 and the 100 simple moving average (4-hours).
  • There was a break above a key contracting triangle with resistance near $233 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair is likely to accelerate further higher if it clears the 100 SMA and $240.

Bitcoin Cash Price Rallies 6%

After forming a support base above the $220 level, bitcoin cash price started a steady recovery. BCH broke the $220 and $230 resistance levels to move into a positive zone, similar to bitcoin above $10,500.

The price traded above the 23.6% Fib retracement level of the downward move from the $297 high to $200 swing low. There was also a break above a key contracting triangle with resistance near $233 on the 4-hours chart of the BCH/USD pair.

The pair is now facing hurdles near $240 and the 100 simple moving average (4-hours). The current price action is positive and if bitcoin cash clears the 100 SMA, there are chances of another push towards the $250 resistance.

Bitcoin Cash Price

Bitcoin cash rallies to $240: Source: TradingView.com

The 50% Fib retracement level of the downward move from the $297 high to $200 swing low is near the $250 level to act as a resistance. Any further gains could lead the price towards the $260 and $265 resistance levels in the near term. The next major hurdle is near the $290 swing high.

Dips Supported in BCH?

If bitcoin cash price starts a downside correction, the broken triangle resistance near $234 might provide support. The next major support is near the $230 level, where the bulls are likely to appear.

If the price fails to stay above the $230 support, the price could revisit the $220 support. Any further losses could lead the price towards the $200 handle in the near term.

Technical indicators

Hourly MACD – The MACD for BCH/USD is currently gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently rising and it is well above the 60 level.

Key Support Levels – $230 and $220.

Key Resistance Levels – $240 and $250.

     
 
 




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