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Bitcoin Cash Price Analysis: BCH/USD switches to the recovery mode, jumps above $286.00


Bitcoin Cash (BCH) has recovered from the intraday low $280.90 and recovered above $285 by the time of writing. The  fifth digital coin with the current market capitalization of $5.2 billion is still down nearly 2% on a day-to-day basis despite the upside momentum. 

BCH/USD: Technical picture

On the intraday charts, BCH/USD bumped into a local resistance created by the middle line of the 1-hour Bollinger Band at $286.00.  A sustainable move above this area will open up the way to the next barrier created by a 50-hour SMA at $288.00. Once it is out of the way, the upside is likely to gain traction with the next focus on psychological $290.00 and the upper line of the 4-hour Bollinger Band at $293.30. The ultimate resistance os created by psychological $300.00. 

BCH/USD 1-hour chart

On the downside, if $280.00 gives way, the sell-off may be extended towards 200-day SMA at $273.00. This barrier served as a strong resistance for the best part of the year, so no it may provide strong support and trigger the next bullish wave.  a sustainable move below this area will negate the bullish forecast and bring more bears to the market.

BCH/USD daily chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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