- Bitcoin Cash price action remains limited under $300 amid consolidation.
- Potential for gains eyeing $300 depends on price action on breaking descending trendline resistance.
Bitcoin Cash recently broke above the resistance at $250 which gave the price a boost past $300. A five-months high was traded at $340, marking the end of the rally commenced mid-July. BCH/USD retreated under $300 dealing on being dealt a blow by the descending trendline resistance.
Support was, however, confirmed at $250 with the price immediately bouncing towards $300. The barrier at $300 has proved impenetrable with Bitcoin Cash bulls forced to seek refuge above the 200-day SMA ($273.68). It has become an uphill task to build gains above $300. The struggle is emphasized with the 200-day SMA maintaining the gap above the 50-day SMA.
Other technical indicators currently highlight a possible sideways trend taking over. The RSI is holding the position above 60. Its horizontal motion hints that gains will continue to be limited in favor of consolidation.
A study of the MACD reinforces the sideways price action as it levels at 20. There is a minor bullish divergence that hints that buying pressure is present but only enough to keep BCH pivotal at $290. Glancing upwards, there is potential for more gains erupting above the descending trendline resistance; such a breakout could easily extend above $300.
BCH/USD price chart
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.
Recommended Content
Editors’ Picks
Sui bulls eyes for a new all-time high of $6.35
Sui price recovers most of its weekly losses and trades around $5.06 at the time of writing on Friday. On-chain metrics hint at a rally ahead as SUI’s long-to-short ratio reaches the highest level in over a month, and open interest is also rising.
Bitcoin Weekly Forecast: Room for a recovery or continuation of the pullback?
Bitcoin’s price slightly recovers and trades around $94,700 on Friday after declining nearly 6% earlier this week. US Bitcoin spot Exchange Traded Funds data shows signs of mild recovery, with a total net inflow of $462.2 million until Thursday.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: All hints for a continuation of the correction
Bitcoin retests its key support level of $92,493; a firm close below it could continue its ongoing correction. Ethereum price closed below its crucial support level of $3,236, suggesting the continuation of the pullback.
XRP funding rates flashes negative, eyes $2.17 following 4% decline
Ripple's XRP declined 4% on Friday following a decline in its funding rates. The remittance-based token could decline to test the $2.17 support level if the crypto market decline extends.
Bitcoin: Room for a recovery or continuation of the pullback?
Bitcoin’s (BTC) price slightly recovers and trades around $94,700 on Friday after declining nearly 6% earlier this week. US Bitcoin spot Exchange Traded Funds (ETF) data shows signs of mild recovery, with a total net inflow of $462.2 million until Thursday. A 10xResearch report released this week projects Bitcoin’s price action for the upcoming major events in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.