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  • BCH outperformed the rest of the altcoins toward the end of Tuesday, as per Santiment.
  • The downside is capped at $235 by the 50-day SMA.

Bitcoin Cash has been on an upswing since September 24, going up from $207.25 to $255, as of press time. Towards the end of Tuesday, BCH went on a bit of a rampage jumping up from $243 to $255 in just about an hour. Santiment, a crypto analytics platform, noted that the Bitcoin fork outperformed the rest of the “altcoin pack” in the process.

The technical outlook

BCH has managed to flip the 100-day SMA from resistance to a support level. The MACD shows increasing positive momentum, which should give the buyers enough firepower to aim and break past the $262 resistance line.

BCH/USD daily chart

BCHUSD daily chart

The daily confluence detector shows a lack of strong resistance walls on the upside. Hence, if the buyers manage to break past this level, they should take the price near the $300 zone.

Bitcoin Cash confluence detector

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IntoTheBlock’s daily active addresses metric also adds further credence to the bullish outlook. According to this, the number of new addresses created daily, based on a one-month trailing average, reached a low of 14,800 on October 12. Since then, it has spiked to 28,000, as of writing.

BCH daily active addresses

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This is a positive sign for BCH since new addresses entering the network is a very bullish signal.

The Flipside: Can the bears reverse this trend?

If the bears want to reverse the bullish narrative, they will need to reclaim the 100-day SMA and flip it back into a resistance barrier. Following that, the downside seems extremely limited. 

Referring back to the daily confluence detector, it seems that there are strong support zones at the 200-day SMA and the $242 line. Even if BCH somehow manages to break below this, it will only drop till the 50-day SMA ($235). 

Key price levels to watch

Currently, the bulls need to aim for the $262 resistance line. Breaking past this will give the buyers enough momentum to reach $300.

On the downside, the bears face many strong support walls that should be resilient enough to absorb a tremendous amount of selling pressure. This effectively caps the downside at 50-day SMA ($235).