Bitcoin cash price rallied recently above the $300.00 level and tested an important resistance at $350.00. BCH is currently consolidating below $350.00 and it is likely preparing for the next key break.
- Bitcoin cash price surged higher above $300.00 before sellers protected the $350.00 hurdle.
- BCH is trading inside a short term contracting triangle with resistance at $330.00 on the daily chart.
- The price could either rally above $350.00 or start a major correction towards the $205.00 support.
Trade BCH with CryptoTrader
Bitcoin Cash Price Analysis (BCH to USD)
Previously, we discussed about bitcoin cash rallying towards the $350.00 resistance zone. BCH/USD did climb higher, broke the $300.00 resistance and tested the key $350.00 resistance where sellers took a stand.
Click to Enlarge Chart
Looking at the daily chart of BCH/USD, the pair rallied sharply after it broke the $200.00 and $205.00 resistance levels. The price even surpassed the $250.00 resistance and settled above the 25-day simple moving average.
Finally, there was a nasty upward move above the $300.00 level before the price ran into a significant resistance near $350.00. It coincides with the 50% Fib retracement level of the last major drop from the $637.16 high to $71.57 low.
Clearly, the price was rejected near the $350.00 level and later it started consolidating gains. At the outset, there is a short term contracting triangle in place with resistance at $330.00.
Should bitcoin cash break the triangle resistance, it will probably continue higher above the $350.00 resistance. The next crucial resistance is near the $420.00 area (the previous key support). Moreover, it coincides with the 61.8% Fib retracement level of the last major drop from the $637.16 high to $71.57 low.
On the other hand, if there is a downside break below the triangle support at $288.00, then it could start a major correction. The next key support is at $250.00, below which the price could even test the previous resistance (now support) and $205.00.
Overall, the current price action is positive for bitcoin cash above the $280.00 level. Besides, bitcoin and Ethereum are trading above key supports, which could help BCH buyers in taking control in the near term.
The market data is provided by TradingView, Coinbase.
The post Can Bitcoin Cash (BCH) Price Surpass The Key $350 Resistance? appeared first on Blockonomi.