Bitcoin Cash Price (BCH) Setting Up For Strong Rally
After a consolidation phase, bitcoin cash price started an upside correction above the $200.00 resistance area. BCH to USD is now trading nicely above $220.00 and likely setting up for a strong rally.
Key Takeaways: BCH/USD
- Bitcoin cash price is gaining bullish momentum above the $214.50 and $220.00 resistance levels against the US Dollar.
- BCH/USD is following a key ascending channel with support near $216.20 on the 2-hours chart (data feed from Bitstamp).
- Bitcoin is gaining pace and it is trading nicely above the $7,500 resistance area.
Bitcoin Cash Price Analysis
After diving to a new monthly low at $192.70, bitcoin cash started a decent recovery wave. BCH price climbed higher and traded above a couple of important resistances near the $202.50 and $208.00 levels.
Looking at the 2-hours chart, bitcoin cash even settled above the $214.50 resistance level and the 50 simple moving average (2-hours, purple). It opened the doors for more gains above the $220.00 resistance area.
The recent high was near $226.32 and the price is currently consolidating gains. An initial support is near the $221.00 level. It is close to the 23.6% Fib retracement level of the recent rise from $203.76 to $226.32.
On the upside, the price needs to climb above the recent high of $226.32 to continue higher. In the mentioned case, bitcoin cash price may perhaps rise towards the $235.00 and $238.00 resistance levels.
Any further gains could set the pace for a strong upward move towards the $245.00 level. On the downside, the price could correct further if it fails to stay above $221.00.
The next key support is near the $217.50 and $216.20 levels. Besides, it seems like the price is following a key ascending channel with support near $216.20 on the 2-hours chart.
Below the channel support, the price is likely to accelerate losses below the $210.00 and $205.00 levels. Overall, bitcoin cash price is showing a lot of positive signs above the $221.00 level and the 50 simple moving average (2-hours, purple). Therefore, there are high chances of more upsides above the $235.00 and $238.00 resistance levels.