As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull and bear runs, market crashes, and recoveries. With Bitcoin Cash (BCH) showing a fresh surge in its price, I can’t help but feel a sense of deja vu.
The price of Bitcoin Cash has significantly risen, breaking through the barrier at $320. Currently, Bitcoin Cash is holding steady and could potentially surge even further, targeting a new high beyond the $350 resistance level.
- Bitcoin cash price started a fresh increase above the $330 level.
The price is trading above $335 and the 100-hour simple moving average.
There is a bullish flag pattern forming with resistance at $345 on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair could start another increase if it clears the $350 resistance zone.
Bitcoin Cash Price Starts Fresh Surge
As an analyst, I observed that following the establishment of a new foundation beyond the $305 mark, Bitcoin Cash (BCH) commenced a robust surge. Interestingly, BCH managed to outperform both Bitcoin and Ethereum, yielding over 15% growth. Notably, there was a decisive breakthrough above the previously formidable resistance at $320.
The price even surpassed $335 and tested the $350 resistance zone. A high was formed near $349.73 and the price is now correcting gains. There was a minor move below the $345 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $306.92 swing low to the $349.73 high.
Currently, Bitcoin Cash’s price is being traded above $335 and aligning with its 100-hour moving average. The potential roadblock for further growth lies around $345. Additionally, a bullish flag pattern is emerging on the hourly BCH/USD chart, with resistance at the same $345 level.
Breaking through the $345 barrier could trigger a steady climb. The subsequent significant hurdle lies around $350, surpassing which the price may gather momentum to reach approximately $362. Further advancements might push the price towards the potential resistance at $380.
Fresh Drop in BCH?
If Bitcoin Cash’s price doesn’t manage to break through the $345 barrier, it might initiate a new drop. A potential first line of defense on the downside is around the $335 mark. Further significant support can be found either at the $328 level or at the 50% Fibonacci retracement level of the upward movement from its $306.92 low to its $349.73 high.
Should the price not sustain above the $328 resistance level, it might encounter the $320 resistance next. If the downward trend persists, we might see the price moving towards the $305 region in the short term.
Technical indicators
4-hour MACD – The MACD for BCH/USD is gaining pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently above the 50 level.
Key Support Levels – $335 and $328.
Key Resistance Levels – $345 and $350.
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2024-09-20 08:10