Bitcoin Cash (BCH) Set to Bounce, May Face Resistance at $227

Bitcoin Cash (BCH) Set to Bounce, May Face Resistance at $227

Key Resistance Levels: $275, $300, $325
Key Support Levels: $200, $160, $120

BCH/USD Price Long-term Trend: Ranging
In the last four days, Bitcoin Cash has continued to make an impressive move. In the other previous move, the coin was unable to penetrate the first resistance at $227. It is likely that the bulls are going to face the same resistance level.

The resistance at $227 is the same historical price level in September and October where the market consolidated before an upward movement. We are expecting the market to break the initial resistance. A break at the resistance will push BCH to its previous high of $240. However, the price will continue at the bottom of the chart, if the initial resistance remains intact.

BCHUSD-Daily Chart

Daily Chart Indicators Reading:
The Fibonacci tool indicates that BCH will trade and reverse at the 1.272 extension level. From the price action, the coin has been fluctuating above the 1.272 Fibonacci extension level in the last three months. Meanwhile, the market is in a bullish momentum above the 20% range of the daily stochastic.

BCH/USD Medium-term bias: Ranging
On the 4-hour chart, the market is fluctuating between the levels of $200 and $220. The bulls are yet to break above the first resistance at $227 since November 22. The only attempt was on November 29 where the bulls were resisted and the coin fell back to the range-bound zone.

BCHUSD-4- Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and the 50-day SMA are trending horizontally indicating a sideways move. The coin is approaching Level 50 of the daily Relative Strength Index period 14 which indicates that the coin is rising.

General Outlook for Bitcoin Cash (BCH)
Bitcoin Cash will continue its range bound movement for a few days as the bulls are yet to break the resistance at $227. The price upward move has been weak because of the lack of sufficient buyers at the demand zone. More buyers will be needed at least to push the price upward.

Bitcoin Cash Trade Signal
Instrument: BCHUSD
Order: Buy
Entry price: $210
Stop: $175
Target: $241

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.