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  • Bitcoin adds 2% on Tuesday and clears the resistance at $540.
  • The bulls must clear the short-term resistance at $550 for a recoil to $560 (key level).

The cryptocurrency sphere is quite on the regulation news, especially from the United States. Yesterday the market ignored the news that Japan through the Financial Services Agency (FSA) is tightening regulations in a bid to reduce hack attacks on exchanges. Trading was more or less mundane on Monday with cryptos making slightly lower corrections. Bitcoin Cash was stuck in a range below $540 until the Asia trading hours Tuesday.

The crypto spiked in a brief engulfing candle clearing the hurdles at $540 to trade intraday highs of $552. BCH/USD is up more than 2% on a daily basis, becoming the best performer among the top 20 digital assets. The price is currently settling in a short-term bullish flag pattern on the 60-minutes chart. Both the 50 SMA and the 100SMA are below the price which is dancing at $545.

Prior to today’s surge, Bitcoin Cash was stable above $520. Besides, the bullish trendline has been providing the much-needed support. The prevailing trend on the chart is slightly bullish but the buyers are lacking the support to break above the bullish flag pattern. The next immediate resistance is at $550 while the bulls have their eyes on $560. Several support levels are highlighted on the chart; at $530, $520 and $510.

BCH/USD 1-hour chart