Bitcoin cash price formed a solid support near the $115 level and bounced back. BCH is likely setting up for more gains above $135, $140 and $150 in the near term.
Key Talking Points
· Bitcoin cash price recovered nicely above the $120 and $126 resistance levels against the US Dollar.
· BCH broke a major connecting bearish trend line with resistance at $125 on the 4-hours chart (data feed from Bitstamp).
· The price is showing positive signs, but there is a strong resistance near the $140 level.
Bitcoin Cash Price Analysis
These past few days, there was a steady decline in bitcoin, bitcoin cash, ripple, Ethereum, litecoin and other altcoins. BCH even broke the $130 support level and traded towards the $110 level.
Looking at the chart, the price tested the $115 level where buyers emerged. As a result, there was a solid recovery initiated and the price traded above the $120 resistance level. There was even a break above the 23.6% Fibonacci retracement level of the last decline from the $163 high to $115 swing low.
More importantly, the price broke a major connecting bearish trend line with resistance at $125 on the 4-hours chart. It has opened the doors for more gains, but the price is now facing a strong resistance near the $140 level.
An initial resistance is near $136 and the 100 simple moving average (4-hours). The next important resistance is at $140 and another bearish trend line on the same chart. Finally, the 50% Fibonacci retracement level of the last decline from the $163 high to $115 swing low is near $139.
Therefore, buyers are likely to struggle near the $138-140 resistance zone. Should bitcoin cash break the $140 barrier and settles above the 100 simple moving average (4-hours), there could be a bullish continuation towards the $150 and $160 levels.
Overall, bitcoin cash is trading with a few bullish signs, but a break above the $138 and $140 levels is needed for a sustained upward move in BCH in the near future.
The market data is provided by TradingView.
