Bitcoin Cash sits above $10 resistance range, will it bounce or sink from here?
Bitcoin Cash's resurrection seems to have begun as the price has started to surge from the resistance zone. This resistance zone stretches from $310 to $298 and BCH's next move depends on whether the price pierces this zone or bounces from it.
From $495 to 310, BCH has shed about 36% of its profits. The local top seems to have blown off for BCH and many other altcoins. After collapsing by an enormous 23% in only 36 hours, Bitcoin Cash looks to have set itself up for a surge in the upcoming days.
- Resistance zone ranging from $310 to $298 is the only thing holding the bears from mauling BCH.
- At the time of writing, a short surge seems to have already initiated.
- Continuation of this surge will lead the price towards the immediate resistance at $355.
Four Hour Bitcoin Cash ChartSource: Trading View.
The collapse that lasted for a little under two weeks is ending. The price is ready for the next surge which will push it from $330 to $355, a 10% surge. Supporting this is the Stochastic RSI which indicates a blow-off of the bearish momentum aka the sellers, or at least for now. More so, the Stochastic RSI, which takes into consideration both the Stochastic and the RSI for the price has started its bullish crossover from the oversold zone.
Only two likely scenarios are possible from here onward. The immediate surge with a continuation of a bullish crossover causing the price to hit the aforementioned price target. The other scenario is that the price faces headwinds hence leaving the price moving slowly sideways or slow upward movement. Either way, the price is due for at least 8-10% surge within the week's close.
The second resistance would be $411, unlike the previous level this is if Bitcoin Cash bulls are feeling overly optimistic. Although unlikely, this is also possible if the bulls keep their momentum in check.
As always, a worst-case scenario would cause the BCH price to sink to the lower level of the resistance zone, ie, $298. Breaching the lower level would take the price to $280 and perhaps even down to $277. However, like the overly optimistic scenario, an overly bearish scenario is also unlikely but shouldn't be neglected either.
About The Author
Nick LeesonNick Leeson is an avid trader and cryptocurrency enthusiast. Introduced to cryptocurrencies in early 2016 by a misclick on a YouTube video, Leeson has grown increasingly fascinated by them. He owns cryptocurrencies to trade and complete his goals of growing his accounts from scratch. Leeson's favourite cryptocurrencies include a lot of mid-cap altcoin projects that have the potential to actually disrupt the future. Any and all technical analysis/price prediction by Leeson is not a financial and/or investment advice of any sort.
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