Bitcoin cash prices rose more than 8%, breaking the resistance levels of $ 250 and $ 260 against the US dollar. BCH should remain above the $ 300 mark.
- Bitcoin cash prices are gaining momentum above the $ 260 pivot level against the U.S. dollar.
- The price was trading near the $ 300 level and is currently consolidating profits.
- On the 4-hour chart of the BCH / USD pair (Kraken data feed), a short-term contact triangle forms with a resistance close to USD 295.
- The pair is likely to accelerate further if it crosses the $ 300 resistance zone.
Bitcoin cash price gains bullish momentum
In the past few days, there has been a sharp rise in bitcoin and bitcoin cash prices above $ 10,000 and $ 250, respectively. BCH even traded above the main pivot level of $ 260 and the simple moving average of 100 (4 hours).
Finally, there was a pause above the $ 280 resistance. The price was close to the $ 300 level and hit a new monthly high of $ 297. Gains are currently being consolidated near the $ 290 level and the fib retracement level of 23.6% of the recent rally is being tested from a low of $ 265 to a high of $ 297.
A short-term contact triangle appears to form on the 4-hour chart of the BCH / USD pair with a resistance close to USD 295. Below the triangle support, a main support forms near $ 280.
Bitcoin cash testing $295: Source: TradingView.com
The recent rally's 50% fib retracement level from $ 265 to $ 297 could also serve as strong support. On the upside, the price faces hurdles near $ 295 and $ 300.
A successful break above triangular resistance and then $ 300 could open the doors for a bigger increase. In the case mentioned, the price could rise towards USD 320 in the short term.
Dips supported in BCH?
If the Bitcoin cash price triggers a downward correction, the $ 280 level will likely offer support. Further losses could push the price up to $ 275 in the short term.
There is also a key bullish trend line with support near $ 270, below which it may fall towards the simple moving average of $ 100 (4 hours) or $ 250.
Hourly MACD – The BCH / USD MACD is currently gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH / USD is currently rising and is in the overbought zone.
Major support levels – $ 285 and $ 280.
Major resistance levels – $ 295 and $ 300.
Disclaimer: 76.4% of retail CFD accounts lose money.