HomeAltcoin NewsBitcoin Cash Analysis: Bulls Aiming Crucial Upside Break

Bitcoin Cash Analysis: Bulls Aiming Crucial Upside Break

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  • Bitcoin cash price is slowly moving higher and it is trading above $225 against the US Dollar.
  • The price is currently consolidating below the $240 resistance and above the 55 simple moving average (4-hours).
  • There is a crucial contracting triangle forming with resistance near $236 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could either rally above the $240 resistance or dive back towards the $200 handle.

Bitcoin cash price is showing positive signs above the $225 level against the US Dollar. BCH/USD is likely to surge above $240 as long as it is above the $225 support.

Bitcoin Cash Price Analysis

After forming a base above the $210 level, bitcoin cash price started a slow increase against the US Dollar. BCH price broke a couple of important hurdles near the $220 and $225 levels to move into a positive zone.

The price even settled above the $225 support and the 55 simple moving average (4-hours). It gained pace above the $230 level, but the bulls struggled to clear the $240 resistance. A high is formed near $242 and the price is currently consolidating gains.

There was a corrective wave below the 23.6% Fib retracement level of the upward move from the $218 low to $424 swing high. However, the price seems to be forming a strong support above the $225 level and the 55 simple moving average (4-hours).

There is also a crucial contracting triangle forming with resistance near $236 on the 4-hours chart of the BCH/USD pair. The triangle support is close to the 50% Fib retracement level of the upward move from the $218 low to $424 swing high.

If there is an upside break above the triangle resistance, bitcoin cash price is likely to surge above the $240 and $242 levels. The next key resistance is near the $250 level, above which the price might rise towards the $258 level.

Conversely, the price may perhaps break the triangle support and dive below the $225 support. The next major support is near the $210 level, followed by the $200 handle.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearly consolidating below the $240 resistance and above the 55 simple moving average (4-hours). The price could either rally above the $240 resistance or dive back towards the $200 handle.

Technical indicators

4 hours MACD – The MACD for BCH/USD is slowly gaining pace in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level.

Key Support Levels – $225 and $210.

Key Resistance Levels – $236 and $240.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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