- BCH continues to defy gravity with 22% gains
- Bulls focus on $200; the RSI says its possible.
Bitcoin Cash (BCH) also known as Bitcoin Cash ABC has gained 22% since this time on Wednesday after an over 16% rally on Tuesday and 12% gain on Monday. All in all the coin’s price increased whooping 77% since the beginning of the week. BCH/USD touched $75.99 low on Monday and rallied towards $146.23 on Wednesday before settling down at $133.70 by press time.
Bitcoin Cash is back at the fourth position of the cryptocurrency rating with a market value of $2.43B and an average daily trading volume over $500M.
The coins rally was supported by CoinText BCH wallet launch in Bangladesh; however, the main reason is related to the woes of its closest rival Bitcoin SV. The coin came under pressure after numerous reports on double-spending vulnerability, also known as a “0-conf transaction” double spend.
BCH/USD, the technical picture
On the 4-hour chart, BCH/USD managed to break above the sloping trendline that goes all the way down from the pre-fork high at $646.17. This development opens the way towards $165.00 (the lower border of the precious congestion zone) and to the ultimate $200.00; however, the coin will have to clear $146.23 resistance (Wednesday’s high) before it gets there.
On the intraday level, SMA100 (4-hour) at $117.80 serves as local support and a good entry point for short-term speculative longs. Once it is broken, a stronger hurdle of $110.00 will come into focus. This support is created by a combination of SMA50 (1-hour) and the above-mentioned broken trendline. A sustainable move lower will negate intraday bullish forecasts and signal a short-term top.
The Relative Strength Index stays close to an overbought territory, which should make buyers wary; though it points upwards, which means that the upside potential is not exhausted.
BCH/USD, 4-hour
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