A Bitcoin Cash Breakout Looks Imminent, but Bulls Are Hesitant

Summary:

Bitcoin Cash appears to be on the verge of a breakout, but the bulls remain hesitant and price continues to test the ceiling of the range.

Bitcoin Cash appears to be on the verge of a breakout. This is all thanks to the upsurge in Bitcoin prices over the weekend. The BTCUSD pair traded above $10,000 this morning, taking several correlated assets along with it. Recent reports indicate that 77% of Bitcoin wallets are in profits. Recall that Bitcoin prices had fallen below $5000 a few months ago, presenting a re-entry opportunity which appears to have paid off for many traders who secured positions at those prices.

Cryptoslate reports that a top billionaire expects a lot of the money in Bitcoin forks such as Bitcoin Cash to flow into DeFi. However, traders do not seem eager to do this just yet, even as Bitcoin Cash gets dragged to the upside by the BTCUSD breakout.

Technical Outlook for BCHUSD

Bitcoin Cash is presently trading at the top end of the horizontal range which sees 257.64 as the ceiling of this range. Higher Bitcoin prices could exert enough pull to initiate a breakout. If this happens, then Bitcoin Cash would be able to target the 274.31 resistance target (9 and 30 April as well as 9 May highs), with further resistance seen at 300.00 and 308.26. 327.22 and 354.21 round off the near-term potential upside targets, but the attainment of these will depend on a strong move by BTC towards the $11,000 mark, which could then exert similar correlated pressure on BCHUSD.

Conversely, a rejection at the top end of this range allows for a pullback towards the 238.93 support level, with the range’s floor at 208.94 also standing by to provide itself as a new target if prices decline further. A breakdown of the range targets 195.53 and possibly 179.55 and is only expected to occur if Bitcoin prices fall from present levels.