Bitcoin Cash price started a major increase above the $320 resistance. BCH is consolidating and might aim for more gains above the $350 resistance.
- Bitcoin cash price started a fresh increase above the $330 level.
- The price is trading above $335 and the 100-hour simple moving average.
- There is a bullish flag pattern forming with resistance at $345 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair could start another increase if it clears the $350 resistance zone.
Bitcoin Cash Price Starts Fresh Surge
After forming a base above the $305 level, Bitcoin Cash price started a fresh increase. BCH outpaced Bitcoin and Ethereum to gain over 15%. There was a clear move above the $320 resistance zone.
The price even surpassed $335 and tested the $350 resistance zone. A high was formed near $349.73 and the price is now correcting gains. There was a minor move below the $345 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $306.92 swing low to the $349.73 high.
Bitcoin cash price is now trading above $335 and the 100-hour simple moving average. Immediate resistance on the upside sits near the $345 level. There is also a bullish flag pattern forming with resistance at $345 on the hourly chart of the BCH/USD pair.
A clear move above the $345 resistance might start a decent increase. The next major resistance is near $350, above which the price might accelerate higher toward the $362 level. Any further gains could lead the price toward the $380 resistance zone.
Fresh Drop in BCH?
If Bitcoin Cash price fails to clear the $345 resistance, it could start a fresh decline. Initial support on the downside is near the $335 level. The next major support is near the $328 level or the 50% Fib retracement level of the upward move from the $306.92 swing low to the $349.73 high.
If the price fails to stay above the $328 support, the price could test the $320 support. Any further losses could lead the price toward the $305 zone in the near term.
Technical indicators
4-hour MACD – The MACD for BCH/USD is gaining pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently above the 50 level.
Key Support Levels – $335 and $328.
Key Resistance Levels – $345 and $350.
Read the full article here