Bitcoin Cash Analysis: Upside Continuation Likely Above $270

Friday 23 October 2020, 5:23 PM AEST - 1 month ago

Bitcoin Cash Price

  • Bitcoin cash price rallied and gained pace above the $250 and $265 resistance levels against the US Dollar.
  • The price traded to a new monthly high at $275 and it is well above the 55 simple moving average (4-hours).
  • There is likely a bullish continuation pattern forming with resistance near $272 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair is likely to resume its upward move if it clears the $272 and $275 resistance levels.

Bitcoin cash price started a strong upward move and it even broke $265 against the US Dollar. BCH/USD is currently consolidating gains and it could continue to rise above $270.

Bitcoin Cash Price Analysis

This week, bitcoin cash price started a strong increase above the $250 resistance against the US Dollar. BCH price even gained pace above the $255 and $260 levels move into a positive zone.

Finally, the price surged above the $265 resistance and it settled well above the 55 simple moving average (4-hours). It traded to a new monthly high at $275 and recently started consolidating gains. There was a break below the $270 level.

However, the price is holding the $265 support, and the 23.6% Fib retracement level of the recent rally from the $238 swing low to $275 monthly high. It seems like there is likely a bullish continuation pattern forming with resistance near $272 on the 4-hours chart of the BCH/USD pair.

If there is an upside break above the $270 and $272 resistance levels, the price is likely to continue higher. The next major resistance is near the $275 level, above which the price could easily rise towards $285. Any further gains might call for a test of $300.

Conversely, there could be a downside break below the $266 and $265 support levels. The next major support is near the $256 level. It is close to the 50% Fib retracement level of the recent rally from the $238 swing low to $275 monthly high.

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