Bitcoin Cash traders should look for a close above this resistance

0

 102 total views

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Since dropping from the $275 baseline in early May, Bitcoin Cash [BCH] finally found rebounding opportunities after plunging to its record low in the $96-zone.

The price has been hovering near the upper band of the Bollinger Bands (BB) for the last two weeks as it broke into high volatility.

A compelling close above the $162-$174 range could ensure a continued bull run in the coming days.

Any close below the immediate support could aid the selling efforts to invalidate near-term bullish tendencies. At press time, BCH was trading at $149.7, up by 4.83% in the last 24 hours.

BCH Daily Chart

Source: TradingView, BCH/USDT

The bears capitalized on the aggravated fear sentiment by pulling BCH towards its fresher multi-yearly lows on 13 July. But the bulls finally flipped the three-month trendline resistance to support in the recent rally.

The altcoin registered a 74.4% devaluation (from 5 April) and matched its December 2018 lows a few weeks ago.

With the basis line of BB (green) looking north, the buyers would aim to continue their buying spree. Also, the trading volumes marked a double-digit 24-hour uptick that propelled a bullish engulfing candlestick on the chart.

Any close above the $174 resistance could put BCH into price discovery. In this case, potential targets could lie in the $196 region. However, a near-term bearish pull can delay this recovery by causing a retest toward the $130-$136 range in the coming sessions.

Rationale

Source: TradingView, BCH/USDT

Over the last day, the bearish RSI slammed into the overbought-mark resistance. A sustained reversal below this level would aid the sellers in preventing an immediate breakout.

Furthermore, the CMF maintained its peaks over the past week and saw a mild bearish divergence with the price action. Nonetheless, the MACD lines have found a spot above the zero-mark to depict an increasing buying momentum.

Conclusion

Given the mixed readings on the indicators, BCH could see a short-term slowdown. Eventually, the bulls would aim to snap the $174-mark. The targets would remain the same as above.

However, BCH shares a staggering 89% 30-day correlation with the king coin. Thus, keeping a watch on Bitcoin’s movement would be vital in making an accurate decision.

Adblock test (Why?)

Disclaimer:

Blockcast.cc does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision.