Bitcoin Cash breaks out of a falling channel resistance: Spikes more than 8%

Bitcoin Cash is among the few cryptocurrencies that are correcting higher on the day. The crypto is in the green in spite of the market being generally in red. It joins other assets with subtle gains such as Dash (DASH), IOTA (MIOTA) as well as Ethereum Classic (ETC). The majority of the digital assets are making corrections to the south with Bitcoin sliding by 0.45% on the day.

According to the 1-hour timeframe chart, Bitcoin Cash broke out of the descending channel resistance yesterday. The move came after BCH/USD was literally motionless within a narrow range between $120 and $122.5. The stability was welcomed after Bitcoin Cash alongside other cryptocurrencies succumbed to a widespread selloff on Sunday last week.

Following the breakout yesterday, Bitcoin Cash stepped above $130 resistance level. However, the bulls lacked the energy to push the price further up to the psychological $140. This gave the bears an opportunity to enter leading to a retracement below $130. At present, BCH/USD is trading at $127.82 after 0.35% rise on the day.

Taking a broader look at the chart, if the bears fail to sustain BCH above the short-term support at $127.00 and the crypto slides below $125, there is likely to be a further drop to $120. However, $115 is a bouncing wall that will put BCH on a trajectory towards $130 with the bulls’ eyes remaining locked on $140. The gap between the 50-day and the 100-day Simple Moving Averages (SMA) is narrowing to mean that buying entries are increasing and Bitcoin Cash path of least resistance is to the upside.