HomeAltcoin NewsBitcoin Cash Analysis: Fresh Rally Likely If Bulls Clear This Hurdle

Bitcoin Cash Analysis: Fresh Rally Likely If Bulls Clear This Hurdle

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  • Bitcoin cash is eyeing a fresh increase above the $240 resistance against the US Dollar.
  • The price is now trading above the $230 zone and the 55 simple moving average (4 hours).
  • There was a break above a key bearish trend line with resistance near $228 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair must clear $238 and $242 to start a fresh increase in the near term.

Bitcoin cash price is consolidating gains above $230 against the US Dollar, unlike Bitcoin. BCH/USD could start a fresh surge if it clears the $242 level.

Bitcoin Cash Price Analysis

Bitcoin cash price started a downside correction below the $255 support zone. BCH traded below the $242 and $230 support levels before the bulls appeared.

A low was formed near $212 before the price started a decent recovery wave. There was a move above the $220 and $222 resistance levels. The price climbed above the 23.6% Fib retracement level of the downward move from the $263 swing high to the $212 low.

There was also a break above a key bearish trend line with resistance near $228 on the 4-hour chart of the BCH/USD pair. Bitcoin cash is now trading above the $230 zone and the 55 simple moving average (4 hours).

On the upside, the price is facing resistance near the $238 level. It is close to the 50% Fib retracement level of the downward move from the $263 swing high to the $212 low. The next major resistance is near $242, above which the price may perhaps gain bullish momentum.

The next major resistance is near the $252 level. Any more gains above $252 could set the pace for a move toward the $265 level or even $275. If not, the price might start another decline.

Immediate support on the downside is near the $230 level and the 55 simple moving average (4 hours). The first major support sits near the $224 level. The next major support is near $212, below which the bears might aim for $202.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin Cash’s price is now trading above the $230 zone and the 55 simple moving average (4 hours). Overall, the price must clear $238 and $242 to start a fresh increase in the near term.

Technical indicators

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

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

Key Support Levels – $230 and $224.

Key Resistance Levels – $238 and $242.

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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