Bitcoin Cash Price Analysis

Bitcoin Cash (BCH) Signaling Bullish Continuation To $150

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.

Bitcoin Cash Price Analysis BCH Chart

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.

About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: aayushjindal@ethereumworldnews.com
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