Bitcoin Cash analysis: price moves towards key trendline
Price is on the verge of a breakout at the upper limit of a key trendline
Over the past 24 hours, Bitcoin Cash has been trending towards the upper limit of a long term range, with buyers to benefit from a boost of fresh supply to test higher lines between local support and local resistance.
On Saturday, BCH/USD gained about 3% to rise from a low of $219 to $226 mark, but a failure to hold the upside through Sunday meant prices dropped below the trendline once more.
However, given a shot of fresh buying witnessed in the past 24 hours, the pair is likely to test the upper half of the channel between $222 and $243.
BCH/USD hourly price view
Bitcoin Cash has seen increased buying over the last hour, with the volatility witnessed in the better part of the past 24 hours tampering. The short term rally forming on the hourly charts suggests that the price of Bitcoin Cash may hit new highs above $229.
This level is also the weekly peak for the cryptocurrency, which means a lot of wriggle room for buyers to push up towards the local resistance at $233.
According to Guapeva, a TradingView analyst, the BCH/USD pair is poised for a big rally as price hits a rectangle. The pattern is also showing a bullish bias on several indicators.
On the daily charts, the price is at the bottom of this phase, at around $228. The target could be a breakout to $243 and $251. The upside will continue if the Relative Strength Index (RSI) on the 4-hour chart continues pointing north. Notable on the shorter timeframe is also the bullish divergence formed by the MACD.
Currently, BCH/USD is trending above all the major moving averages, with the price also above the 9-day and 15-day EMAs.
Although BCH/USD is currently well supported above the lower limit of the range at $222, it could be vulnerable to a downside if bears overpower the bulls and achieve a lower daily close.
If the price drops to the lower limit of the local support area, Bitcoin Cash could be vulnerable to a June low of around $209.