Bitcoin Cash (BCH) Soars 20%: Can The Momentum Last?

Bitcoin Cash price started a major increase above the $350 resistance. BCH is consolidating and might aim for more gains above the $385 resistance.

  • Bitcoin cash price started a fresh increase above the $350 level.
  • The price is trading above $365 and the 100-hour simple moving average.
  • There is a connecting bullish trend line forming with support at $355 on the hourly chart of the BCH/USD pair (data feed from Kraken).
  • The pair could start another increase if it clears the $380 resistance zone.

Bitcoin Cash Price Starts Fresh Surge

After forming a base above the $315 level, Bitcoin Cash price started a fresh increase. BCH outpaced Bitcoin and Ethereum to gain over 20%. There was a clear move above the $350 resistance zone.

The price even surpassed $365 and tested the $385 resistance zone. A high was formed near $385.95 and the price is now correcting gains. There was a minor move below the $375 level. The price dipped and tested the 23.6% Fib retracement level of the upward move from the $318.02 swing low to the $385.95 high.

Bitcoin cash price is now trading above $365 and the 100-hour simple moving average. There is also a connecting bullish trend line forming with support at $355 on the hourly chart of the BCH/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $318.02 swing low to the $385.95 high.

Bitcoin Cash (BCH)

Immediate resistance on the upside sits near the $380 level. A clear move above the $380 resistance might start a decent increase. The next major resistance is $385, above which the price might accelerate higher toward the $400 level. Any further gains could lead the price toward the $420 resistance zone.

Fresh Drop in BCH?

If Bitcoin Cash price fails to clear the $380 resistance, it could start a fresh decline. Initial support on the downside is near the $365 level. The next major support is near the $355 level or the trend line.

If the price fails to stay above the $355 support, the price could test the $340 support. Any further losses could lead the price toward the $332 zone in the near term.

Technical indicators

4-hour MACD – The MACD for BCH/USD is losing pace in the bullish zone.

4-hour RSI (Relative Strength Index) – The RSI is currently above the 50 level.

Key Support Levels – $365 and $355.

Key Resistance Levels – $380 and $385.

Source: https://www.newsbtc.com/analysis/bch/bitcoin-cash-bch-soars-385/