- Bitcoin Cash breaks away from the altcoin park reviving the hopes of hitting $240.
- The price is facing resistance at 200 MA while the 50 MA provides support at $220.
Mondays are known to be quite volatile in the cryptocurrency market. Besides, the impressive performance by Bitcoin Cash suggests that the volatility is in favor of the bulls. The digital asset is trading 3.3% higher on the day after extending the bullish action from an opening price of $225. Bitcoin Cash touched highs around $235.22 before adjusting to the current $232.
Looking at the four-hour chart we spot a consolidation phase that is giving way to the current breakout. The correction above the ascending trendline gave the correction a boost above the 200 Moving Average (MA). At the moment, the action is growing towards the next target at $240. Also hindering growth is the 50 Moving Average (MA).
BCH/USD four-hour chart
In the daily range, the gap between the 200 MA and the 50 MA is at its peak. This shows an inclination towards lower corrections. The narrowing of the gape could signal a stronger bullish grip. Moreover, a possible cross of the 50 MA above the long-term 200 SMA will place Bitcoin Cash in a trajectory towards $300.
Meanwhile, the Moving Average Convergence Divergence (MACD) suggests that bullish momentum will last longer. The more the bulls stir action to the north, the better the chances of touching the critical $240.
For now, sustaining the price above $230 is the bulls’ biggest nightmare. Bitcoin Cash above $230 will ensure that $240 remains in the line of sight. Another viable support is $220 while the key support area lies between $215 and $205.
Bitcoin Cash Key Technical Levels
Spot rate: $231
Relative change: +6.85
Percentage change: 3%
Trend: Bearish (short-term)
Support: $220 and $205 -$215.