Bitcoin Cash (BCH): Hope this pump doesn’t get to dump
|- Bitcoin Cash value increased by over 65% after hitting new annual lows.
- Bitcoin Cash is inclined to make higher corrections as opposed to bearish price actions.
Bitcoin Cash has been the recovery leader in the market for the past one week. The asset has increased more than 65% from its annual lows around $73.36. The digital asset has shown the strength to sustain growth amid a general market growth. The current gains can be seen in both the volume and the token value.
The recovery staged by Bitcoin Cash stepped above $100 at first; there was continued growth that had it break the psychological level at $200. This seems to have ignited excitement among the traders who before the reversal were counting losses. While the token is exchanging hands around $210 at press time, BCH/USD has broken above $220 resistance level on December 21 before a slight correction.
Bitcoin Cash is trading above the bullish trendline as well as the 1-hour simple moving averages. The gap between the 50 SMA and the 100 SMA continued to narrow and a double cross is expected soon. This also means that the bulls are increasing their entries.
If the $200 support fails to hold ground in the event a reversal occurs, the 61.8% Fib retracement level with the last swing high of $231.41 and a swing low of $85.47 close to $180 will offer the necessary support. Other technical indicators applied to the chart like the RSI and the MACD are in an upward trajectory but still at lower levels compared to the end of last week.
The RSI is currently entering the levels above 70 while the MACD is at 5.38. Bitcoin Cash is inclined to make higher corrections as opposed to bearish price actions. Besides, if the upside remains capped below $220 we can expect the token to stay in the range with support at $200 in the coming few days.
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