In the latest recovery, Bitcoin Cash posted an almost 25% gain in the past week and continued to show signs of strength. It is approaching a critical resistance, where a bigger surge in volatility could take place.
Bitcoin Cash was trending bearishly earlier this month following a new breakdown from a two-week consolidation phase. This led to a dip under the $300 benchmark, but it later found support after testing $288.4.
That price level was sharply rejected with a bounce and the asset started to regain strength. This week became more volatile due to a consistent rise in the demand level and the price surged steadily to $389 earlier today.
It has dropped slightly off this level but remains strong on the weekly outlook. The surge brought trading back into the consolidation area, where it initiated the last breakdown and now targets a critical resistance of $400. A clear surge through this level would confirm a short-term buy.
Failure to overcome this critical resistance could cause a little drawdown before resuming buying at full speed. A liquidity run over the previous low would activate another price breakdown.
Despite this week’s increase in the demand level, which shows signs of capital inflow, BCH is yet to confirm the latest bullish signal as the volume indicator remains flat on the daily chart. The price may appear strong, but the trend is still considered bearish on the monthly outlook.
BCH’s Key Levels To Watch
Once BCH manages to reclaim the mentioned critical resistance, the next buying target would be $448 and $490 before testing the $530 level – which served as a key resistance level for a major rally.
In the opposite direction, the $344 and $288.4 levels are major supports to consider for a drawback. $250 is the next level to watch if the price plummets.
Key Resistance Levels: $400, $448, $490
Key Support Levels: $344, $288.4, $250
- Spot Price: $383.7
- Trend: Bullish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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