Bitcoin Cash Analysis: Fresh Rally Above $260 Very Likely
- Bitcoin cash price rallied to a new monthly high at $276 before correcting lower against the US Dollar.
- The price found support near $250 and it is currently preparing for a fresh increase.
- There is crucial bullish trend line forming with support near $250 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair is likely to start a fresh rally once it clears the $260 resistance area.
Bitcoin cash price is trading in a nice uptrend above the $250 level against the US Dollar. BCH/USD could resume its upward move above the $260 and $265 levels in the near term.
Bitcoin Cash Price Analysis
This week, there was a major upward move in bitcoin cash price above the $226 pivot level against the US Dollar. BCH price broke many key hurdles near $250 to move into an uptrend.
Besides, there was a close above the $250 level and the 55 simple moving average (4-hours). The price rallied above the $260 level and traded to a new monthly high at $276.
Recently, there was a sharp downside correction below the $265 and $260 levels. The price even spiked below the $250 support, but it remained well bid above the 55 simple moving average (4-hours).
A low is formed near $245 and the price is currently rising. It surpassed the 23.6% Fib retracement level of the recent decline from the $276 high to $245 low. Bitcoin cash price is now trading above the $255 level, but it is facing hurdles near the $260 level.
The 50% Fib retracement level of the recent decline from the $276 high to $245 low is also near the $260 level. A successful close above the $260 resistance could open the doors for a sharp increase.
The next key resistance is near the $275 and $276 levels. On the downside, there is a crucial bullish trend line forming with support near $250 on the 4-hours chart of the BCH/USD pair.
If the price fails to stay above the $250 support, it could test the 55 simple moving average (4-hours). Any further losses could lead the price towards the $225 support zone.
Looking at the chart, bitcoin cash price is clearly trading in a nice uptrend above the $250 support and the 55 SMA. On the upside, a clear break above the $260 level could pump the price towards the $275 level.
4 hours MACD – The MACD for BCH/USD is currently gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level.
Key Support Levels – $250 and $244.
Key Resistance Levels – $260 and $275.