Bitcoin Cash Near Key Inflection Zone: Here’s Why BCH Could Rally Again

Aayush Jindal

5 years ago

2 mins read

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Bitcoin cash price corrected lower from the $270 resistance zone. BCH seems to be preparing for the next crucial break either above $260 or towards the $230 support.

Bitcoin cash price is trading in a range above the $250 support zone against the US Dollar.
The price must break the $260 resistance zone to start a fresh increase in the near term.
There is a key contracting triangle forming with resistance near $255 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
The pair could either rally sharply above $260 or start a fresh decline below $250.

Bitcoin Cash Price Approaching Next Key Break

After a strong increase above $250, bitcoin cash price found sellers near the $268 level. BCH price formed a new monthly high near $268 and recently started a downside correction.

There was a break below the $265 support zone and the price even spiked below $250. A low is formed near the $246 level and the price is currently well above the 100 simple moving average (4-hours).

The last swing high was near $263 and the recent low was near $246. Bitcoin cash is currently trading in a range (similar to bitcoin) above the $250 support. It tested the 50% Fib retracement level of the recent decline from the $263 high to $246 low.

More importantly, there is a key contracting triangle forming with resistance near $255 on the 4-hours chart of the BCH/USD pair. The triangle resistance is close to the 61.8% Fib retracement level of the recent decline from the $263 high to $246 low.

Therefore, an upside break above the triangle resistance and the $260 level could open the doors for a fresh increase. The next key hurdle is near the $268 and $270 levels, above which the bulls are likely to aim a test of the $300 handle in the near term.

Downside Break in BCH

If bitcoin cash price breaks the triangle support, it could even struggle to stay above the $246 swing low. The next major support is near the $244 level or the 100 simple moving average (4-hours).

Any further losses could start a steady decline towards the $230 support. Overall, the price could either rally sharply above $260 or start a fresh decline below $250.

Technical indicators

Hourly MACD – The MACD for BCH/USD is struggling to gain pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently just below the 50 level.

Key Support Levels – $250 and $246.

Key Resistance Levels – $260 and $270.

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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