Bitcoin Cash price started a significant rise above the $320 resistance level. Bitcoin Cash is consolidating and could target further gains above the $350 resistance level.
- Bitcoin Cash price started a fresh rally above $330.
- The price is trading above the $335 level and the 100-hour simple moving average.
- A bullish flag pattern is forming with resistance at $345 on the hourly chart of the BCH/USD pair (data from Kraken).
- The pair may start another rise if it breaks the $350 resistance area.
Bitcoin Cash Price Starts New Rise
After forming a base above $305, Bitcoin Cash price started to rise again. Bitcoin Cash outperformed Bitcoin and Ethereum to gain more than 15%. There was a clear move above the resistance area at $320.
The price even surpassed $335 and tested the resistance zone at $350. A high was formed near $349.73 and the price is now correcting its gains. There was a slight move below the $345 level. The price fell below the 23.6% Fib retracement level of the upward move from the $306.92 swing low to $349.73 swing high.
Bitcoin Cash price is now trading above $335 and the 100-hour simple moving average. There is an immediate resistance on the upside near the $345 level. There is also a bullish flag pattern forming with resistance at $345 on the hourly chart of the BCH/USD pair.
A clear move above the $345 resistance could start a decent rally. The next major resistance is near $350, above which the price could accelerate towards the $362 level. Any further gains could push the price towards the $380 resistance area.
New low in BCH?
If Bitcoin Cash price fails to clear the $345 resistance level, it could start declining again. The initial support on the downside is near the $335 level. The next major support is near the $328 level or the 50% Fib retracement level of the upward move from the $306.92 swing low to $349.73 high.
If the price fails to hold above the $328 support level, the price may test the $320 support level. Any further losses may push the price towards the $305 area in the near term.
Technical indicators
4 hours MACD – The MACD for BCH/USD is gaining momentum in the bearish zone.
4-hour RSI – The RSI is currently above the 50 level.
Key support levels – $335 and $328.
Key resistance levels – $345 and $350.