Bitcoin Cash Price Analysis: Strong resistance lies in BCH’s path to $300 – Confluence Detector

  • BCH outperformed the rest of the altcoins toward the end of Tuesday, as per Santiment.
  • The downside is capped at $235 by the 50-day SMA.

Bitcoin Cash has been on an upswing since September 24, going up from $207.25 to $255, as of press time. Towards the end of Tuesday, BCH went on a bit of a rampage jumping up from $243 to $255 in just about an hour. Santiment, a crypto analytics platform, noted that the fifth-largest coin by market cap outperformed the rest of the “altcoin pack” in the process.

The technical outlook

BCH has managed to flip the 100-day SMA from resistance to a support level. The MACD shows increasing positive momentum, which should give the buyers enough firepower to aim and break past the $262 resistance line.

BCH/USD daily chart

BCHUSD daily chart

The daily confluence detector shows a lack of strong resistance walls on the upside. Hence, if the buyers manage to break past this level, they should take the price near the $300 zone.

Bitcoin Cash confluence detector


IntoTheBlock’s daily active addresses metric also adds further credence to the bullish outlook. According to this, the number of new addresses created daily, based on a one-month trailing average, reached a low of 14,800 on October 12. Since then, it has spiked to 28,000, as of writing.

BCH daily active addresses


This is a positive sign for BCH since new addresses entering the network is a very bullish signal.

The Flipside: Can the bears reverse this trend?

If the bears want to reverse the bullish narrative, they will need to reclaim the 100-day SMA and flip it back into a resistance barrier. However, even then, the downside looks pretty limited.

Referring back to the daily confluence detector, it seems that there are strong support zones at the 200-day SMA and the $242 line. Even if BCH somehow manages to break below this, it will only drop till the 50-day SMA ($235). 

Key price levels to watch

Currently, the bulls need to aim for the $262 resistance line. Breaking past this will give the buyers enough momentum to reach $300.

On the downside, the bears face many strong support walls that should be resilient enough to absorb a tremendous amount of selling pressure. This effectively caps the downside at 50-day SMA ($235). 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast