• Bitcoin cash is attempting to break above the $118 resistance level against the US Dollar.
• There is a bearish trend line forming with resistance near $116 on the 4-hour chart of the BCH/USD pair.
• The price must clear $116 and $118 to continue its upward momentum in the near term.
Bitcoin Cash Analysis
Bitcoin cash is attempting to break above the $118 resistance level against the US Dollar. 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 both $116 and $118 to start a steady upward movement in the near term.
Price Action
The Bitcoin cash price has formed a decent support base above the $110 level. BCH started a decent increase and was able to surpass the $112 resistance zone. The price then surged above the $114 mark, followed by it breaking past 50% Fib retracement level of its downward move from peak at $117.30 swing high to low at 111.60 low point. It is now trading above both $114 zone and 55 simple moving average (4 hours). On upside, there is an immediate resistance seen around 116 mark which comes in form of bearish trend line that forms with mentioned said area on 4-hour chart of BCH/USD pair. This trendline also coincides with 76.4% Fib retracement level as well as mentioned move from 117.30 swing high to 111.60 low point respectively. This puts 118 mark as next major hurdle for bulls before they can aim for 120 handle or beyond that towards 126 level if successful in overcoming 118 mark hurdle..
Support & Resistance Levels
In case bulls fail, first immediate downside support lies around 113 handle followed by 112 which may serve as strong base for buyers if 1112 mark fails initially and bears manage taking control over proceedings hereonforth then 110 handle serves as last hope before 102 level comes into play where bears might aim towards 100 handles thereafter if situation worsens further for buyers going forward..
On other side, 116 handle stands tall as initial barrier for bulls followed by 118 which needs to be crossed in order for uptrend continuation scenario become effective hereonforth otherwise chances are more that we might witness some further retreat back down again..
Technical Indicators
The MACD for BCH/USD currently resides comfortably within bullish zone while RSI remains perched slightly over 50 levels confirming lack of any extremities within current market conditions..
Conclusion
Overall, bitcoin cash needs to have solid close over 116 handle followed by 118 handles in order for uptrend continuation scenario becoming valid hereonforth otherwise chances are more that we might witness some further sideways action rather than any significant directional breakout from current levels going forward..