The value of Bitcoin Cash has surged by over 15% and has successfully broken through the $275 resistance level. However, it is now facing strong resistance near the $282 zone.
- The price of Bitcoin Cash began a new surge above the $250 resistance level.
- Currently, the price is trading above $265 and the 100 simple moving average (4 hours).
- A key bullish trend line is forming with support at $258 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
- If the price manages to clear the $282 resistance zone, it could continue to move upwards.
Bitcoin Cash Price Rallies Above $270
After establishing a base above the $232 level, the price of Bitcoin Cash started to steadily increase. It successfully broke through the $245 resistance level, entering a positive zone, similar to Bitcoin and Ethereum.
The price then experienced a strong surge above the $250 and $265 resistance levels, gaining over 15% and testing the $282 resistance level. The price reached a high of around $283 before starting to correct its gains. It briefly dropped below the $275 level.
The price then tested the 23.6% Fib retracement level of the upward move from the $233 swing low to the $283 high. However, Bitcoin Cash is currently showing positive signs above $260 and the 100 simple moving average (4 hours).
Source: BCH/USD on TradingView.com
There is also a key bullish trend line forming with support at $258 on the 4-hour chart of the BCH/USD pair. If there is another increase, the price might face resistance near $275. To continue higher, the price must settle above $282. The next major resistance is near $292, above which the price might accelerate higher toward the $300 level. Any further gains could lead the price toward the $320 resistance zone.
Fresh Drop in BCH?
If the price of Bitcoin Cash fails to clear the $275 resistance level, it could start a fresh decline. The initial support on the downside is near the $265 level.
The next major support is near the $258 level or the trend line. It is close to the 50% Fib retracement level of the upward move from the $233 swing low to the $283 high, where the bulls are likely to appear. If the price fails to stay above the $258 support, the price could test the $245 support. Any further losses could lead the price toward the $232 zone in the near term.
Technical Indicators
4-hour MACD – The MACD for BCH/USD is losing momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently in the overbought zone.
Key Support Levels – $265 and $258.
Key Resistance Levels – $275 and $282.
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The world of cryptocurrency is no stranger to unpredictability and volatility, and this especially holds true for Bitcoin Cash (BCH). In recent months, we have seen BCH experience some significant ups and downs, leaving investors both excited and cautious. However, all signs are pointing towards a fresh surge that could potentially have a thrilling impact on the market. If you have been considering investing in BCH, now is the time to get ready for the rally that is on the horizon. Here are some key indicators to look out for and tips to maximize your profits.
Key Indicators of a BCH Rally:
1. Rising Trading Volume:
One of the key signs of a potential surge in BCH is a rise in trading volume. This refers to the number of shares or coins being traded within a specific time period. A high trading volume indicates a growing demand for BCH, which could lead to an increase in its price. According to data from CoinMarketCap, the 24-hour trading volume for BCH has been consistently increasing in recent weeks, with a 180% jump in just the last month.
2. Growing Adoption:
BCH has been gaining traction and popularity among merchants and consumers as a form of payment. As more and more merchants accept BCH, its value could increase as people start using it for everyday transactions. Additionally, the integration of BCH into major payment platforms like BitPay and Square has further boosted its adoption and potential for a rally. As more businesses and individuals start using BCH, its value is likely to see a significant jump.
3. Technological Advancements:
The development and improvement of technology related to BCH is another strong indication of a potential rally. The recent upgrade to the BCH network, known as the Bitcoin Cash Node (BCHN) has brought improvements in areas like security, scalability, and user experience. With these advancements, BCH is positioned to compete with other major cryptocurrencies and potentially attract more investors.
4. Positive Sentiment:
Another key factor driving the potential for a BCH rally is the overall sentiment surrounding it. Cryptocurrency markets are heavily influenced by public perception and media coverage. With influential figures like Tim Draper predicting that BCH will reach a value of $20,000 by 2023, there is a positive sentiment building around the coin. As more people start to believe in the potential of BCH, the demand for it will increase, eventually leading to a rally.
Practical Tips for Investing in BCH:
1. Do Your Research:
As with any investment, it is crucial to thoroughly research and understand what you are getting into before investing in BCH. Educate yourself on the technology, the team behind the project, and any upcoming updates or developments. This will help you make informed decisions and mitigate risks.
2. Diversify Your Portfolio:
While BCH may seem like a promising investment, it is always wise to diversify your portfolio. This means having a mix of various cryptocurrencies and other assets, such as stocks or precious metals. Diversification minimizes risk and protects your investments in case of unexpected market fluctuations.
3. Consider Dollar-Cost Averaging (DCA):
Dollar-cost averaging is an investment strategy where you allocate a fixed amount of money to invest at regular intervals, regardless of the asset’s price. This approach can help smooth out market fluctuations and potentially lead to better returns.
4. Use a Secure and Reputable Exchange:
When buying and selling BCH, make sure to use a secure and reputable exchange. This will help protect your investments from hacking and other security threats. It is also worth considering a platform that offers additional features such as stop-loss orders or margin trading to help manage risk.
In Conclusion:
The signs are clear - a BCH rally is on the horizon, making it an exciting time for investors to get involved in the market. As with any investment, it is essential to do your research, diversify your portfolio, and use a secure exchange. Keep an eye on the key indicators mentioned, and use practical tips to maximize your profits. With a little caution and a solid strategy, you could potentially reap the benefits of the upcoming BCH surge. Happy investing!
