The price of Bitcoin Cash is trading near a new infection point and analysts predict that BCH could rally soon. The cryptocurrency is recovering from its $225 support zone against the US Dollar and as it is slowly gaining traction, it is also facing a strong resistance near the $240 and $242 levels.
In the past few days, we saw the Bitcoin Cash news showing how BCH consolidated in a range above the $224 and $225 regions. Here, a swing low was formed near $224 right before the price started a fresh increase.
We could also notice a break above the $230 resistance zone, where the bulls were able to push the price above the 23.6% Fib retracement level of the downward move from a $260 swing high to a $224 low.
However, the price of Bitcoin Cash is trading near a crucial hurdle near $240, which many describe as a crucial one for the next moves of the token. There is also a key bearish trend line which is forming next to it and near $242 on the 4-hours chart of the BCH/USD pair.
For what we know, the trend line now coincides with the 50% Fib retracement level which comes of the downward move from the high of $260 to the low of $224. In this manner, the 100 simple moving average on 4 hours is also close to the trend line resistance and $240, preventing an upside break where BCH could rally to new heights.
So, if the bulls succeed in clearing the $242 resistance level, the price will likely accelerate higher. An immediate resistance is now near $246, followed by $250. A successful close above $250 would open the doors for a larger upward move in the coming sessions.
On the other hand, a scenario where Bitcoin Cash is trading below $240 would mean that there could be risk of a fresh decline. The cryptocurrency news now show that an initial support is now near the $235 level, followed by $230. The main support is also forming near the $225 level, below which the bears are likely to aim at a price of $205 and even $200.
The technical indicators for BCH are now as following:
- Hourly MACD – The MACD for BCH/USD is currently gaining some momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level, with a couple of bullish triggers.
- Key Support Levels – $230 and $225.
- Key Resistance Levels – $242 and $250.
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