Bitcoin Cash price may rally to $300 if it breaks resistance.

Bitcoin Cash price may rally to $300 if it breaks resistance.

Bitcoin Cash Prepares for the Next Move

Bitcoin Cash (BCH), one of the leading cryptocurrencies, is currently undergoing a consolidation phase following a strong rally. After reaching as high as $294, BCH faced selling pressure and started a downside correction. Similar to Bitcoin and Ethereum, BCH dipped below the $280 pivot level before finding support near $230. The cryptocurrency has since rebounded and is now slowly moving higher.

Technical Analysis and Key Levels

Looking at the 4-hour chart of the BCH/USD pair, we can see that the price broke above a key bearish trend line with resistance near $242, indicating a potential reversal in the short term. The pair also cleared the 23.6% Fibonacci retracement level of the downward move from the $294 high to the $232 low.

However, BCH is currently trading below $265 and the 100 simple moving average (SMA) on the 4-hour chart, which suggests that there might still be some resistance ahead. Immediate resistance is seen near the $255 level, followed by a stronger resistance near $265. This level coincides with the 50% Fibonacci retracement level of the recent downward move.

If BCH manages to break above these resistance levels, it could rally towards the $280 and $285 levels in the near term. The major hurdle for BCH bulls lies at the $300 level.

On the downside, if BCH fails to clear the $255 resistance, a fresh decline could occur. The first support is near the $240 level, followed by a more significant support near $232. The bulls are likely to emerge at this level to prevent further losses. However, if the $232 support is breached, the price might test the $220 support. In the worst-case scenario, BCH could drop to the $200 handle.

Technical Indicators

Analyzing the technical indicators, we observe that the 4-hour Moving Average Convergence Divergence (MACD) for BCH/USD is gaining momentum in the bullish zone. This indicates that the upward momentum is strengthening. Additionally, the 4-hour Relative Strength Index (RSI) is currently above the 50 level, which suggests that there is still room for further upside potential.

Conclusion

Bitcoin Cash is preparing for its next major move, as it tries to overcome key resistance levels on its path to recovery. The recent consolidation phase could provide an opportunity for traders and investors to assess the market and make informed decisions.

However, as with any investment, it is essential to consider the risks involved and stay informed about market trends and developments. The blockchain industry, in which Bitcoin Cash operates, is a dynamic and rapidly evolving space. Understanding the underlying technology and staying updated with the latest news can greatly improve one’s ability to navigate this exciting and potentially profitable sector.

Bitcoin Cash Price Chart

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