• Bitcoin Cash is attempting to recover above the $112 resistance level against the US Dollar.
• The price must clear the $116 and $118 levels to start a steady upward movement in the near term.
• On the downside, immediate support is near the $113 level and first major support sits near the $112 level.
Bitcoin Cash Analysis: Key Breakout Resistance at $118
Attempting Recovery Wave
Bitcoin cash is attempting a recovery wave above the $112 resistance against the US Dollar. The price is now trading above the $114 zone and the 55 simple moving average (4 hours). There is a key bearish trend line forming with resistance near $116 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase). The pair must clear $116 and $118 to start a steady upward movement in the near term.
Price Analysis
Bitcoin cash price formed a decent support base above the $110 level. BCH started a decent increase and was able to clear the $112 resistance zone. The price climbed above the $114 resistance level. There was a move above the 50% Fib retracement level of the downward move from the swing high to low. It is now trading above both key levels mentioned before.
Resistance Levels
On its way up, there are multiple resistances that need to be cleared for further gains in Bitcoin cash’s value being seen: Firstly, there is minor resistance at around 116 which needs to be cleared for prices to rise higher; secondly, there’s major resistance at 118 which needs to be broken for prices to surge beyond this point; finally, there’s significant resistance at 120 which would mark an important milestone for Bitcoin cash if it were achieved by it today or in coming days.
Support Levels
Immediate support on Bitcoin cash’s downside can be found at 113 while first major support lies near 112 after this point comes another important one at 110 below which bears might aim for 102 as their next target followed by 100 if they manage enough momentum towards it until then however these are just theoretical numbers without any practical evidence seen yet as of current time frame so traders should wait for better entry points before initiating any position in it either long or short side as both options may turn out profitable depending upon market action taken by bulls or bears respectively during this period.
Conclusion
From technical analysis perspective, Bitcoin Cash’s price is now trading above both key levels mentioned before i-e 114 and 55 SMA (4 hrs) while it has strong resistances waiting ahead at 116 & 118 levels respectively which need to be crossed firmly so that further upside movement can begin allowing bulls more breathing room before they make further attempts towards 120 mark but until then current range bound activity between 110-118 will continue keeping traders on their toes regarding decision making process about their positions whether they should go long or short inside this range only till some decisive breakout happens on either side of these two marks mentioned earlier until then we’ll have wait patiently for market direction confirmation before entering into any type of trades related with BCH/USD pair currently existing within same region since last few weeks with no significant breakouts made yet either side of same range but all that could change very soon as markets may decide something different overnight thus leaving us with no other option than being prepared beforehand whatever situation arises due unexpected market volatility caused due sudden news releases related with cryptocurrency industry movements worldwide .