That last 7 days price variation has been an interesting momentum for Bitcoin Cash after surging from $206 to $306, amounting to a +50% gains. Meanwhile, BCH was rejected at $306 yesterday and the price has now dropped to $274 (a -5.92% losses). However, we can expect the fourth-largest cryptocurrency to continue bullish if $270 can bolster as support. Otherwise, the value may depreciate soon.
Bitcoin Cash (BCH) Price Analysis: Daily Chart – Bullish
Key resistance levels: $306, $335, $358, $370
Key support levels: $270, $250, $242, $206
Last week, we mentioned the triangle breakout but now Bitcoin Cash is shaping inside a descending channel pattern since mid-July. The October 25 rebound at $206 has made BCH record a weekly high of $306 while trading in a channel boundary. Yesterday, the price was rejected at $306 and now looking for support at $270 which was recently rejected.
A daily close below the $270 would bring us to $250, $242 and 206 support in a couple of days. Today, the RSI 70 was rejected to signal a potential reversal, although the MACD has seen a bullish climb which shows that the buyers lurk around the corner. If $270 area can act as support, we may see a bullish continuation to $335, $358 and $370. However, we need to clear the $306 resistance before considering a further rise.
Bitcoin Cash (BCH) Price Analysis: 4H Chart – Bullish
The 4-hour chart is looking bullish but underway for a bearish move. At the time of writing, Bitcoin Cash is testing the ascending wedge’s support at $270.94 following the last 24-hours low volatility which was characterized by doji candles. Meanwhile, the current bearish candle formation has just signalled a bearish footing. Support is likely at $250-$240 areas once we have a clean wedge break-down.
Surging below grey horizontal support might further turn BCH weak at $220 and $210. While the RSI crosses down the mid-band, the MACD is positive but now oscillating towards the zero levels. Alternatively, we can expect a bounce if the wedge’s lower boundary can support the market. The resistance to watch out for is $290-$306 zones, although further buying target lies at $320. For now, Bitcoin Cash remains bullish but a breakout is imminent!
BCH SELL SIGNAL
Sell Entry: $269
TP: $243 / $212
Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.