Bitcoin Cash bulls need to break above the 200 SMA to remain in control
Bitcoin Cash price over the past couple of weeks has failed to breach a key resistance line, with multiple rejections at around $245 curtailing bulls’ plans for a retest of prices near $300.
The cryptocurrency, which forked from Bitcoin in 2017, has had a few great days, breaking above a descending channel to hit new highs in October. However, the downturn to lows of $207 on September 23 and subsequent flip above $240 has been stalled as noted above.
On October 10, the price of the peer-to-peer electronic cash coin rose to highs of $246.6. Yet, a series of attempts to break higher failed to hold as bears ensured the cryptocurrency’s price touched a low of $233 on Monday, October 12.
At the moment, the BCH/USD pair is changing hands around $242, the upward momentum once again stalling around the 200-day simple moving average.
BCH/USD technical picture
For the moment, there has been stagnation within a range — the 50 SMA ($234) and 200 SMA ($245.4) — which is limiting movement on either side of the curve.
As can be seen in the daily chart above, BCH/USD has had three successive green candles. However, because the movement is capped by the 200 SMA, bulls need to hold gains above the level and then break above the 100 SMA to keep bears at bay.
If that happens, sustained upside pressure will help bulls breach the important $290 resistance area. The bullish outlook on the time frame is helped by the RSI and MACD, which suggest buyers still have the upper hand if prices remain firm above the 50 SMA.
The area is important as it keeps bulls within reach of the 200 SMA where data from IntoTheBlock shows holders purchased around 660,000 coins. The considerable wall provided by the 78,000 addresses is the only strong barrier before $270 and then $290.
On the flipside, sellers holding their ground around the 200-day SMA risks weakening bulls further. At this level, a lack of upside push from the market would mean an aggressive defense of the aforementioned 50 SMA.
If sellers establish a footing and push lower, BCH/USD will likely drop below $230, with $229-$223 providing the next major support zone. Here, bears will need to breach a huge wall where nearly 134,440 addresses acquired over 1.69 million coins.