Bitcoin Cash (BCH) Price Analysis: BCH Nears Critical Resistance, Where Will the Price Go Next?

In the latest recovery, Bitcoin Cash posted an almost 25% gain in the past week and continued to show signs of strength.

Bitcoin Cash (BCH) has shown signs of strength over the past week, posting an almost 25% gain and approaching a critical resistance level.

After trending bearishly earlier this month with a new breakdown from a two-week consolidation phase, BCH encountered support at $288.4 following a dip below the $300 mark. This price level saw a sharp bounce and the asset began to regain strength.

With a consistent rise in demand, this week became more volatile and the price surged steadily to reach $389 earlier today. The asset has dropped slightly off this level but remains strong on the weekly outlook.

The surge brought trading back into the consolidation area, where it initiated the last breakdown and now targets a critical resistance of $400. A clear surge through this level would confirm a short-term buy.

Failure to overcome this critical resistance could cause a little drawdown before resuming buying at full speed. A liquidity run over the previous low would activate another price breakdown.

Despite this week’s increase in the demand level, which shows signs of capital inflow, BCH is yet to confirm the latest bullish signal as the volume indicator remains flat on the daily chart. The price may appear strong, but the trend is still considered bearish on the monthly outlook.

BCH’s Key Levels To Watch

Once BCH manages to reclaim the mentioned critical resistance, the next buying target would be $448 and $490 before testing the $530 level – which served as a key resistance level for a major rally.

In the opposite direction, the $344 and $288.4 levels are major supports to consider for a drawback. $250 is the next level to watch if the price plummets.

Key Resistance Levels: $400, $448, $490

Key Support Levels: $344, $288.4, $250

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