Bitcoin Cash Price Analysis: BCH/USD explodes 2% higher in minutes

Bitcoin Cash breaks out above a short term falling wedge pattern, renewing its bullish momentum.
BCH/USD targets $250 in the short term but the hurdle at $245 must come down as soon as possible.

The cryptocurrency market is dominantly in the green mid-through the week’s trading. Bitcoin Cash has not been left behind following a 2% steady rise on the day in a matter of minutes. Some of the best-performing cryptocurrencies include Ripple (XRP) up 4.62%, EOS up 1.89% and IOTA (IOT) up 1.93%.

Bitcoin Cash surge is happening following a break above a short term falling wedge pattern. A recent attempt to come out of the ‘crypt’ saw BCH step above $240. Unfortunately, the hurdle at $245 made it difficult for the bulls to sustain the gains. A minor reversal came into the picture, sending Bitcoin Cash back to the support at $235. The bounce from this support area is currently seeking higher support.

BCH/USD is trading at $240.71 amid a strongly building bullish momentum. All indicators are aligning in favor of a rally that could see Bitcoin Cash above $250. The RSI has resumed the uptrend from the average (50) and is closing in on 70 (overbought). The MACD has slowed down the downward momentum, saving itself a trip under the midline. The indicator has found support and is now changing direction upwards.

The same upward momentum is reflected in the gap made by the 50 SMA above the longer-term 200 SMA in the 1-hour timeframe. A break past the short term resistance at $242 would pave the way for gains above $245 and $250 respectively. For now, the path of the least resistance is northwards.

BCH/USD 1-hour chart

Share: Cryptos feed

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.