Bitcoin Cash Price Analysis: BCH/USD is at Crucial Juncture

Bitcoin cash price spiked higher during the past two days and moved above the $1,200 resistance level. BCH/USD is currently in the bullish zone, but it is now at a crucial juncture.

BCH price jumped higher from the $750 low and lead many other cryptocurrencies such as bitcoin, Ethereum and ripple. Let’s understand the current trend and analyze the price action.

Key Points

• There were sharp gains of more than 25% from the $750 low to well above $1,200.
• The BCH/USD pair is currently trading near a crucial bearish trend line with resistance at $1,350 on the 4-hours chart.
• The pair may soon make the next move either above $1,350-1,400 or below $1,280 in the near term.

The recent bitcoin cash price spike caught the market attention since it traded above the $1,100 and $1,200 resistance levels. It outperformed bitcoin, Ethereum and other major cryptocurrencies.

Looking at the 4-hours chart, there is a clear uptrend in place from the $757 swing low. The price has moved above the 38.2% Fib retracement level of the last decline from the $1,790 high to $757 low.

However, it seems like the price is facing a crucial bearish trend line with resistance at $1,350. The same trend line is around the 50% Fib retracement level of the last decline from the $1,790 high to $757 low. Moreover, the 100 simple moving average (green, 4-hour) is also around the same trend line resistance at $1,350.

Therefore there two scenarios possible:

Scenario 1: BCH price breaks the $1,350 resistance and rally toward $1,500 or even above $1,600.

Scenario 2: It fails to move above the trend line and resistance at $1,350. In this case, a fresh short-term correction could be initiated with supports on the downside at $1,250 and $1,200.

Overall, the current price action is positive. BTC/USD is also slowly gaining upside momentum and it looks like it could break a major resistance as pointed in the recent bitcoin price forecast.

Moreover, ripple price is heading higher and it would be interesting to see if it could test the $1.0000 handle or not in the near term.

Trade safe traders and enjoy the ride!!!

Charts Courtesy – Trading View and data feed via Bitfinex.