Crypto Watch: Technical Outlook for Bitcoin Cash (BCHUSD)

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Written By: Eno Eteng (MSTA)

Nov 28, 2019, 15:22 GMT 15:22

Bitcoin – BTCUSD

Summary:

Bitcoin Cash continues to witness slow and steady price recovery, following the moves of Bitcoin in the last 24 hours. This is the outlook for BCHUSD.

Bitcoin Cash is an analogue of Bitcoin, and tends to follow the number one crypto around the market. In the last 24 hours, Bitcoin was able to claw back a few hundred dollars in gains. Bitcoin Cash has also followed suit, recovering some of its lost ground above critical support at 208.94.

There are some of the Bitcoin Cash enthusiasts out there who are predicting great things for Bitcoin Cash. Ex-CEO of Bitcoin.com Roger Ver is one of them and he thinks Bitcoin Cash may be on the pathway to rising 1000% times.

However, such optimism has gotten many into trouble in the past, and it is best that price action for Bitcoin Cash and other cryptos follows identified levels.

So far, price has firmed up above the previous resistance (now turned support in role reversal) at 208.94 and is presently trading at 219.26. This price recovery puts Bitcoin Cash firmly on the path towards the next resistance target at 238.03 (which corresponds to previous highs of October 9 and 10). Further price recovery could also open the door to a major resistance at 274.31 where multiple previous lows occurred on May 16-19, August 15 and 30 as well as November 8.

On the flip side, a stall in price recovery could lead to a retest of 195.53 (October 23 and November 22 lows) and if downside pressure is strong enough, 170.55 (previous highs of March 30) could also come into focus.

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.