Bitcoin Cash is blocking below the resistance line

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Bitcoin Cash is blocking below the resistance line

Bitcoin Cash bulls need to break above the 200 SMA to stay in control

The Bitcoin cash prize could not break through an important resistance line in recent weeks. Multiple rejections at around $ 245 have limited the cops' plans to retest prices near $ 300.


The cryptocurrency spun off from bitcoin in 2017 had some great days, breaking over a descending channel to hit new highs in October. However, the downturn to lows of $ 207 on September 23 and the subsequent move above $ 240 was stalled as noted above.


On October 10, the price of the peer-to-peer e-cash coin soared to a high of $ 246.6. However, a number of attempts to break higher failed. Because bears ensured that the price of the cryptocurrency hit a low of $ 233 on Monday, October 12th.


For now, the BCH / USD pair is changing hands around $ 242, with upside momentum stalling again around the 200-day simple moving average.


At the moment there has been stagnation within a range - 50 SMA ($ 234) and 200 SMA ($ 245.4) - that is limiting movement on either side of the curve.


As can be seen in the daily chart above, BCH / USD had three consecutive green candles. However, with movement limited by the 200 SMA, bulls will need to hold gains above that level and then break above the 100 SMA to keep the bears at bay.


In this case, sustained upward pressure will help bulls break key resistance area at USD 290. The bullish outlook in the timeframe is supported by the RSI and MACD, which suggests that buyers will still have the upper hand should prices stay above 50 SMA.


The area is important as it keeps bulls within range of the 200 SMA, where data from IntoTheBlock shows holders have purchased around 660,000 coins. The sizable wall that the 78,000 addresses provide is the only strong barrier before $ 270 and then $ 290.


On the flip side, sellers who hold their ground around the 200-day SMA risk weakening the bulls further. At this level, too little upward pressure from the market would mean an aggressive defense of the above 50 SMA.


If sellers create a base and push down, BCH / USD will likely drop below $ 230 with $ 229-223 being the next major support zone. Here bears have to break through a huge wall where almost 134,440 addresses have purchased over 1.69 million coins.

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