Key Takeaways:
- Bitcoin Cash’s price rallied over 15%, breaking the $200 resistance.
- BCH/USD broke a major bearish trend line with resistance near $210 on the daily chart.
- The price faces a major roadblock near the 50-day simple moving average (blue).
NEW DELHI (CoinChapter.com) — Bitcoin Cash price rallied over 15% and surpassed the $220 zone. BCH/USD could rise further if it closes above the $230 resistance.
Bitcoin Cash Price Signals Recovery
In the past few days, Bitcoin Cash’s price started a recovery wave from the $165 swing low. The BCH/USD pair surpassed the $185 and $188 resistance levels.
Today’s rally in Bitcoin, Ethereum, and other cryptocurrencies after a US court ruling in favor of Grayscale also lifted the market sentiment for Bitcoin Cash.
JUST IN: 🇺🇸 US Court paves way for first Spot #Bitcoin ETF after Grayscale wins lawsuit against SEC, Bloomberg reports. pic.twitter.com/SmmA3szHpT
— Watcher.Guru (@WatcherGuru) August 29, 2023
There was a clear move in BCH above the 23.6% Fib retracement level of the downward move from the $327 swing high to the $165 low.
More importantly, Bitcoin Cash broke a major bearish trend line with resistance near $210 on the daily chart. The price faces a major hurdle near the $320 zone and the 50-day simple moving average (blue).
The $230-$232 region represents a multi-touch zone. Therefore, a close above the $230 resistance could increase the price. The first key resistance above $230 is near the $245 level, above which the price could increase.
The next key resistance is near $265 or the 61.8% Fib retracement level of the downward move from the $327 swing high to the $165 low, above which the price could rise toward $290. Any more gains might push the price toward the $320 resistance zone.
Downside Correction?
Conversely, Bitcoin Cash could fail to clear the $320 resistance zone and correct lower. If there is a downside correction, the price might find bids near the $205 level.
If BCH’s price declines below $205, it could revisit the $185 support. Any more losses may open the doors for a move toward the $165 low in the coming days.
Overall, Bitcoin Cash price is gaining pace above the $210 resistance but is also facing hurdles near the 50-day SMA. If BCH surpasses the $230 resistance, it could easily drift toward $265 or even $290 in the coming days. Conversely, the price might be lower and revisit the $185 support soon.
