Bitcoin Cash traders should look for a close above this resistance
Disclaimer: The findings in the following analysis are the sole opinions of the author and should not be considered investment advice.
Since the fall from the $275 baseline in early May, Bitcoin Cash [BCH] finally found rebound opportunities after plunging to record lows in the $96 zone.
The price has been hovering near the upper band of the Bollinger Bands (BB) for the past two weeks as it broke into high volatility.
A convincing close above the $162-$174 range could ensure a continued bull run in the coming days.
Any close below the immediate support can help sell efforts to invalidate impending bullish trends. At press time, BCH was trading at $149.7, up 4.83% in the last 24 hours.
BCH daily chart
The bears took advantage of the worsening fear sentiment by pulling BCH towards its fresh multi-year lows on July 13. But the bulls finally turned the three-month trendline resistance into support in the latest rally.
The altcoin recorded a 74.4% devaluation (as of April 5), matching its December 2018 low a few weeks ago.
With the baseline of BB (green) pointing north, the buyers would aim to continue the buying spree. Trading volumes also marked a double-digit 24-hour increase driving a bullish engulfing candlestick on the chart.
Any close above the $174 resistance could put BCH in price discovery. In this case, potential targets could lie in the $196 region. However, a short-term bearish pull could delay this recovery by causing a retest towards the $130-$136 range in the coming sessions.
Over the past day, the bearish RSI hit the resistance at the overbought mark. A sustained reversal below this level will help sellers prevent an immediate breakout.
Furthermore, the CMF maintained its highs for the past week and saw a mild bearish divergence with the price action. Nevertheless, the MACD lines have found a place above the zero mark to depict increasing buying momentum.
Given the mixed readings on the indicators, BCH could see a short-term decline. Ultimately, the bulls would aim to capture the $174 mark. The measurements will remain the same as above.
However, BCH shares a staggering 89% 30-day correlation with the king coin. Therefore, it will be crucial to keep an eye on Bitcoin’s movement to make an accurate decision.