Bitcoin Cash, a fork of Bitcoin, joined in on the rally among cryptocurrencies yesterday. BCHUSD rose by 30.26% or $80.80 to a high of $368.34 before it finished at $347.84. In doing so, it broke through resistance at the falling trend line from connecting the highs of August 5, August 14, September 18, and November 6. We could see Bitcoin Cash rally even further to its July 19 highs around $420.00 if a candlestick closes above yesterday’s high at $368.34.
As of this writing, the cryptocurrency is trading at $339.31. It would seem that there have not been enough buyers in the market to push BCHUSD beyond its August 2019 highs. However, it’s also possible that the cryptocurrency is only retracing some of its gains and could rally soon. In fact, I would not be all too surprised if BCHUSD falls to $271.00. There seems to be a confluence of support around this level. For one, it coincides with the 200 SMA. Secondly, the broken trend line seems to fall in this area. Lastly, it is the 50% Fib level when you draw the Fibonacci retracement tool from the low of December 17 to yesterday’s high.
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