BCH/USD technical analysis: Bitcoin Cash shoots higher on a decent volume surge
|- Bitcoin Cash moves higher as buying volume pressures price higher.
- There is now a strong resistance zone in sight at 330.00
I know the four hour above can look slightly daunting but I will explain what is going on step by step.
First of all the price has moved higher off a decent bout of volume indicating the market is supporting the move to higher levels.
Now price is hitting a resistance point where there is a Fibonacci level (61.8%), a resistance level and a low volume pocket are all meeting.
The 61.8% Fibonacci level is often known as the golden ratio in trading and can provide some resistance.
The low volume node (LVN) refers to the fact that not many contracts have changed hands at that price point in recent history. This is represented by the volume profile indicator on the left.
Lastly, the resistance zone has been respected six times on the chart to good effect. Price often seems to react at the zone and this is why the price seems to be stalling.
Now, this does not mean the price will not break higher. It just means it is a significant point if it does. When big price levels break it usually means traders think something important is going on.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.