After witnessing a massive explosion in June, BCH corrected lower and entered the second half of the year in a bearish mode. However, it later established support and bounced back. Against Bitcoin, the price remains strong.
Bitcoin Cash started to gain traction after locating support at $165.5 in August. It further broke out of a crucial resistance line in the mid-month and slightly pulled back to the low of $200 last week.
That low level held strong and the coin resumed positive actions this week. Today, the price increased by 10% and flipped through a vital resistance level as it taps $236.7 – marking the highest price level in six weeks.
Despite showing signs of strength over the past few days, it is essential to note that the trend remains extremely bearish on the weekly chart.
Should the price continue to increase daily, BCH could reclaim $270 by the end of the month. However, the asset may pull back slightly on the hourly before resuming bullish momentum at full speed.
A drop below the $200 mark could invalidate the monthly breakout as the bears could step back. If that occurs, August support would be the next area of interest for the bears. But as it stands now, the bulls are in control from a short-term perspective.
BCH’s Key Levels To Watch
Source: TradingView
The closest area of interest for buyers right now lies at the $249.3 resistance level. If BCH manages to flip that resistance this week, the next buying target would be $268.5, followed by $293. The $329 level remains a crucial resistance to watch for a strong breakup.
In case of a drop, the level to watch for pullback lies at $225.5, where the price just flipped today. If that level fails to provide support, the lower level to consider for drops are $202.5 and $180.5.
Key Resistance Levels: $249.3, $268.5, $293
Key Support Levels: $225.5, $202.5, $180.5
- Spot Price: $230
- Trend: Bullish
- Volatility: High
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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Image Source: Shubham’s Web3 on Unsplash // Image Effects by Colorcinch
