Bitcoin Cash Breaks Initial Resistance at $300, Targets the $420 High
Feb 09, 2022 at 12:12 //
PriceBitcoin Cash (BCH) resumed its upward movement after the price broke the 21-day moving average line and resistance at $300.
Secondly, the resistance line of the downtrend channel has been broken. Breaking the resistance line indicates that the downtrend has ended. On February 8, BCH rallied to $350 but found resistance at the recent high.
Buyers could not sustain the bullish momentum as the market reached an overbought area. BCH should have risen to $400 or $460 if current resistance was overcome. In the meantime, BCH has retraced to the $325 breakout level and resumed consolidation above current support. A new uptrend is likely to repeat to overcome resistance at $350.
Bitcoin Cash indicator reading
Bitcoin Cash price bars are above the 21-day moving average, while price bars are below the 50-day moving average. This indicates that prices are likely to fluctuate for a while. BCH will resume the trend when these levels are broken. BCH is above the 50% area of the daily stochastic. This indicates that the market is in a bullish momentum. However, the bullish momentum is weak.
Technical Indicators
Key Resistance Zones: $800, $820, $840
Key Support Zones: $500, $480, $460
What is the next move for Bitcoin Cash?
On the 4-hour chart, Bitcoin Cash's sideways trend ended when the altcoin reached the high of $350. Currently, the altcoin is in a small retracement, which should prepare for a subsequent upward movement. The uptrend has started above the $325 support.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow