Bitcoin Cash (CRYPTO: BCH) is trading higher on Friday alongside most of the cryptocurrency market.
The last time Bitcoin Cash broke resistance with a consolidation above the resistance level, it hit highs over $ 1,600. It is possible that another break in resistance will cause the crypto to do the same thing again.
Bitcoin Cash was up 8.48% to $ 721.07 during the last check on Friday afternoon.
Daily Bitcoin Cash Chart Analysis
- Bitcoin Cash has moved away from the higher low trendline (orange) and is approaching resistance in what technical traders call an ascending triangle pattern.
- The $ 800 level is one place the crypto has struggled to break above in the past, and it might see sellers near that area in the future. The higher low trendline was the most recent area of support and may continue to hold as support throughout the duration of the pattern.
- The crypto is trading above the 50-day moving average (green) and the 200-day moving average (blue), indicating that sentiment in the crypto is bullish.
- Each of these moving averages may be a support area going forward.
- The Relative Strength Index (RSI) has risen in recent days and now stands at 64. This shows that buying pressure has recently exceeded selling pressure.
What’s next for Bitcoin Cash?
Bullish traders are looking to see Bitcoin Cash trade above the highest low trendline and then move above resistance. The bulls would then want to see the stock consolidate above resistance for Bitcoin Cash to eventually start moving higher.
Bearish traders are looking to see Bitcoin Cash fall below the lower trendline and move closer to the $ 400 level. Bears would then like to see a break below that $ 400 support level for a possible further downside.
Image: Courtesy of Bitcoin Cash
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