Bitcoin Cash Rally Reaches $300 and Technicals Indicate Further Upsides

Aayush Jindal

1 year ago

2 mins read

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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

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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