Bitcoin Cash price boosts as it breaks above range support

By James Gray·6 July 2020·1 min read

Key Points

Bitcoin Cash bounced higher this week, signaling traders believe the worst for the pair may have passed.
The move started Saturday, when BCH/USD gained 3%, climbing from $219 to $226.

Bitcoin Cash bounced higher this week, signaling traders believe the worst for the pair may have passed. The move started Saturday, when BCH/USD gained 3%, climbing from $219 to $226. A pullback on Sunday took the wind out of those gains, dropping the pair beneath a critical trendline. But buying returned within the past day, setting up another test of the $222-$243 trading band.

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The hourly chart reveals the short-term momentum building. A rally is forming that could push Bitcoin Cash past $229, the level that marks the week's high point. Once past that, the next target becomes $233, where local resistance sits. The pair has climbed above all major moving averages, trading north of the 9-day and 15-day exponential moving averages.

Analyst Guapeva on TradingView identifies a rectangle pattern taking shape on the daily timeframe. Multiple indicators flash bullish signals. The price occupies the lower portion of this rectangle, roughly around $228. Guapeva forecasts a move to $243 if the pattern breaks higher, with $251 as the ultimate target.

For the rally to continue, the 4-hour RSI must maintain its upward momentum. Support comes from a bullish divergence in the MACD, visible on shorter timeframes. Bitcoin Cash has established solid footing above $222, the lower boundary of its trading range.

But bears retain ammunition. Should they seize control and force a lower daily close, Bitcoin Cash becomes vulnerable. A break below $222 support opens the path to June's low near $209.

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