Bitcoin Cash Rally Reaches $300 and Technicals Indicate Further Upsides
Bitcoin cash price rallied over 8% and it broke the $250 and $260 resistance levels against the US Dollar. BCH is likely to continue higher above the $300 barrier.
- Bitcoin cash price is gaining momentum above the $260 pivot level against the US Dollar.
- The price traded close to the $300 level and it is currently consolidating gains.
- There is a short-term contacting triangle forming with resistance near $295 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 $300 resistance zone.
Bitcoin Cash Price Gaining Bullish Momentum
In the past few days, there was a strong increase in bitcoin and bitcoin cash price above $10,000 and $250 respectively. BCH even traded above the main $260 pivot level and the 100 simple moving average (4-hours).
Finally, there was a break above the $280 resistance. The price traded close to the $300 level and it traded to a new monthly high at $297. It is currently consolidating gains near the $290 level, and testing the 23.6% Fib retracement level of the recent rally from the $265 swing low to $297 high.
It seems like there is a short-term contacting triangle forming with resistance near $295 on the 4-hours chart of the BCH/USD pair. Below the triangle support, there is a major support forming near $280.
Bitcoin cash testing $295: Source: TradingView.com
The 50% Fib retracement level of the recent rally from the $265 swing low to $297 high might also act as a strong support. On the upside, the price is facing hurdles near $295 and $300.
A successful break above the triangle resistance and then $300 could open the doors for a larger increase. In the mentioned case, the price might rally towards the $320 level in the near term.
Dips Supported in BCH?
If bitcoin cash price starts a downside correction, the $280 level is likely to provide support. Any further losses could lead the price towards the $275 level in the near term.
There is also a crucial bullish trend line forming with support near $270, below which the may possibly decline towards the 100 simple moving average (4-hours) or $250.
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 in the overbought zone.
Key Support Levels – $285 and $280.
Key Resistance Levels – $295 and $300.
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Aayush Jindal, Khareem Sudlow
