Bitcoin Cash reclaims support above $300 as buyers build the momentum to take down the $400 resistance.
BCH/USD faces increasing selling pressure at $310 ahead of the next key hurdle at $320.
Bitcoin Cash price hit a wall at $326 in the wake of rallying prices across the cryptocurrency market. A flash drop occurred culminating in a devastating drop to $245 on August 2. BCH/USD spent most of last week nurturing a bullish trend first towards $300 and later $400.
For a period of time, the price remained pivotal at $300 with the upside limited at $320. On the downside, support had been established the 50% Fibonacci retracement level taken between the last swing high of $337.80 to a swing low of $235.01.
The 50 Simple Moving Average (SMA) has also contributed a lot in keeping the price in check as well as keeping bulls focused on sustaining gains above $300. A break above the trendline resistance during the Asian hours have seen an engulfing candle printed above $300.
Bitcoin Cash is trading at $308 at the time of writing. It is facing massive selling pressure at $310. If buyers pull above this zone, gains beyond $320 will become apparent.
Technically, the bullish case to $400 is supported by several technical levels from the RSI and the MACD. The RSI has reversed the trend upwards and currently eyes 70. In other words, the influence by the bulls continues to grow steadily.
Similarly, the MACD is likely to hold above the midline in the short term but if a bullish divergence comes into the picture, a spike to $400 will become even more apparent. For now, establishing support above $300 should be among the bulls’ highest priorities as it would encourage more buyers to enter the market, completing their mission to $400.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org