Bitcoin Cash price is facing resistance at the $360 resistance level but has found support at the $280 level. Is a price breakout imminent?
In retrospect, the price of Bitcoin Cash (BCH) had been trading in a range-bound movement below the 12 and 26-day Exponential Moving Averages (EMAs) for the past 30 days. The bulls have found support $280 price level while it struggles to break above the $360 resistance level.
On August 5, BCH bulls were unable to break the $360 resistance level and as a result, Bitcoin Cash price had been trading below the resistance zone. The $280 level had been the support zone since April. The bears had not broken below the $280 support zone since April because the market respects the historical price zones.
On the upside, if the bulls break above the EMAs, the coin will rise and retest the $400 and $480 price levels. On the other hand, if the bulls fail to break the EMAs, Bitcoin Cash price will fall and reach a low of $150 or $200 level.
In the meantime, BCH price is in the overbought region of the daily stochastic while above the 60% range, which is an indication that the price is in a bullish momentum and buy signal.
BCHUSD Price Chart
On the 1-hour chart, BCHUSD price is in a bullish trend zone. The 12 and 26-day EMAs are trending horizontally right above the $300 level, suggesting that the market is fluctuating and will continue to do so for a few more days. If the BCHUSD continues to range, the tendency is for the pair to have a price breakout.
In the meantime, BCHUSD price is in the oversold region of the daily stochastic but above the 20% range. This indicates that price is in a bearish momentum and sell signal.
Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.
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