Bitcoin Cash Heads Higher After It Makes A Bounce Off Support

Bitcoin Cash BCH/USD is trading higher Friday.
Bitcoin Cash has been able to trend above the higher low trendline for the past few months and could see a break of resistance in the next few.

Bitcoin Cash was up 3.27% at $572.65 at press time.

Bitcoin Cash Daily Chart Analysis

• Bitcoin Cash trades in what technical traders call an ascending triangle pattern, inside of a sideways channel.
• The higher low trendline has been holding as support for the crypto since mid-July and has acted as a strong support level. If broken the next strong support level may be found near the $400 level. If Bitcoin Cash continues to rise along the higher trendline, it may find resistance near the $800 area.
• The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto is seeing recent bearish sentiment.
• Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been falling the past few weeks and now sits at 42. This shows that the selling pressure in the market has outweighed the buying pressure as many more sellers have entered the crypto.

What’s Next For Bitcoin Cash?

Bullish traders are looking to see the crypto continue to hold above the higher trendline and make its way toward resistance. Bulls would then like to see a resistance break and for the price to consolidate above the level for a possible further bullish move.

Bearish traders are looking to see the crypto break below the higher low trendline and fall to the potential $400 support level. Bears would then like to see the support level get broken and begin to hold as resistance for possible further bearish moves.