Home CryptocurrencyAnalysis Signs point to a new BCH rally ahead

Signs point to a new BCH rally ahead

by SuperiorInvest

Bitcoin Cash price rose over 15% and broke the $275 resistance. BCH is now facing strong resistance near the $282 zone.

  • Bitcoin cash price started a fresh rise above the $250 resistance.
  • The price is trading above $265 and the 100 simple moving average (4-hours).
  • A key bullish trend line is forming with support at $258 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
  • The pair could continue to rise if it breaks the $282 resistance zone.

Bitcoin Cash Price Rises Above $270

After forming a base above the $232 level, Bitcoin Cash price began a steady rise. It broke the $245 resistance to enter a positive zone, like Bitcoin and Ethereum.

There was a sharp rise above the $250 and $265 resistance levels. The price gained more than 15% and tested the resistance of $282. A high was formed near $283 and the price is now correcting the gains. There was a move below the $275 level.

The price tested the 23.6% Fibonacci retracement level of the upward move from the low of $233 to the high of $283. BCH is now showing positive signs above $260 and the 100 simple moving average (4-hours) .

Source: BCH/USD on TradingView.com

There is also a key bullish trend line forming with support at $258 on the 4-hour chart of the BCH/USD pair. If there is another rise, the price could face resistance near $275. To continue rising, the price must rise above $282. The next major resistance is near $292, above which the price could accelerate towards the $300 level. Any further gains could push the price towards the $320 resistance zone.

New drop in BCH?

If Bitcoin Cash price fails to overcome the $275 resistance, it could start a new decline. Initial support on the downside is near the $265 level.

The next major support is near the $258 level or the trend line. It is close to the 50% retracement level of the upward move from the low of $233 to the high of $283, where the bulls are likely to appear. If the price fails to hold above the $258 support, the price could test the $245 support. Any further losses could push the price towards the $232 zone in the near term.

Technical indicators

4-hour MACD: The MACD for BCH/USD is losing pace in the bullish zone.

4-hour RSI (Relative Strength Index) – The RSI is currently in the overbought zone.

Key support levels: $265 and $258.

Key resistance levels: $275 and $282.

Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.

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