Bitcoin Cash Price Analysis: BCH bulls eye $280 amid falling wedge breakout
- The No. 5 coin has charted a bullish breakout on hourly chart.
- BCH/USD looks to extend the upside break to $280 level.
- The spot is poised to book nearly 6% weekly gain.
Bitcoin Cash (BCH/USD) is consolidating the latest uptick to a daily high of 257.50, having recovered losses following a dip to 253.47. The spot broke the recent side trend to the upside amid a fresh buying wave seen across the crypto market on Saturday. The bulls are now gathering pace for the next push higher. The digital asset remains on track to book about 6% weekly loss. The market capitalization for BCH/USD stands at $4.73 billion.
BCH/USD hourly chart
A falling wedge breakout is spotted on the hourly in the last hour after the No. 5 coin broke through the pattern resistance at 255.25. Adding credence to the upside break was the price finally cutting the 100-hourly Simple Moving Average (HMA), then at 255.38, from below.
On its way north, the spot is trying hard to taking out the stiff resistance around 257 levels, where the horizontal 21 and 50-HMAs coincide. A break above the latter will open doors towards Friday’s top of 263.41. The buying pressure will likely intensify above that level, as the focus will now remain on the pattern target, measured at 283.46.
In absence of any substantial supports, the spot risks further falls. The next support is directly seen at the channel trendline support of 220.94. An hourly close below the latter will validate the channel formation, with the prior downside momentum likely to continue.
To the flip side, the 100-HMA resistance-turned-support could cap the immediate downside. A break below the last, the spot could test the pattern resistance-now-support at 253.85.
All in all, the intraday outlook remains bullish, also as the hourly Relative Strength Index (RSI) has managed to climb back above the 50 level.
BCH/USD levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
