Bitcoin Cash (BCH) finally saw an upside breakout on Monday as the digital asset rose to highs last seen since the middle of March.
*Bitcoin Cash turned into sideway consolidation after hitting yearly highs at $773
*The barrier at $630 was strong
*Bitcoin Cash price climbs on positive altcoin market sentiment
BCH Price rose over 10% on Monday, settling at $625 as at the time of writing. Bitcoin cash turned into a sideways consolidation in late February after hitting yearly highs at $773. While it’s recovering today, the barrier at $630 was strong and kept the BCH price confined below this level. Thus, it may be too early to call a breakout yet due to the weak upside momentum. Instead, the consolidation may likely extend further for a while. Currently, BCH is trading in the upper part of its consolidation range while targetting a breakout past the $630 barrier.
Climbs on Positive Altcoin Market Sentiment
BCH price has been struggling to find direction in the past few weeks while trading in a tight range as its demand waned. Bitcoin Cash market cap subsequently dropped to a present value of $11.48 billion, making it the 12th biggest digital currency in the world. On April. 5, the positive Altcoin market sentiment gave BCH price a boost while awaiting further breakout from its consolidation. Recently, the Bitcoin Cash antitrust suit alleging Roger Ver and Jesse Powell and several other crypto figures of market manipulation were dismissed with prejudice.
BCH Daily Chart: Ranging
BCH steadily crept higher from Mar. 24 lows of $442 to surpass the MA 50 ($551) barrier. A thrust higher today brings BCH price in close shave with the $630 barrier range. This level has been confirmed as resistance since early January with BCH price being rejected from there. A bullish breakout above the $630 resistance could continue the uptrend and aim for the resistance at $654. The next resistance is at the yearly high at $773.
Meanwhile, the support and resistance level of the BCH consolidation range are key levels for a bullish or bearish breakout. Downside risks on BCH are likely to be contained by the consolidative support at $432 even in case of deeper pullback. The RSI presently is pointing upwards near 64.
BCH/USD 4-Hour Chart: Bullish
BCH/USD resuscitated the positive climb from Mar. 4 lows of $520. The uptick paused after the bulls were unable to push past the $628 high. Giving the upswing another chance and if buyers continue to lift the BCH/USD pair, immediate upside constraints may develop from the $630 range zone. However, stepping over this border, the bulls could then face resistance from the nearby level at $654.
Should this bullish momentum endure, enabling buyers to triumph over the yearly peak at $773, this could reinforce a belief in the positive shift. Otherwise, if sellers dip the BCH/USD pair under the immediate support at $608, support could arise from the $560 low and the adjacent MA 50 ($547) beneath. Summarizing, BCH/USD bullish bias may persevere should the pair endure above the moving averages 50 and 200 and the ascending trend line. Yet, a break below the $442 support could undermine the positive picture.
Key Levels
Resistance Levels: $800, $773, $630
Support Levels: $600, $538, $484
Image Credit: Tradingview
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