Bitcoin Cash Surges 17% as Volume Spike Confirms Breakout Above Key Resistance
Market Pulse
- Bitcoin Cash (BCH) surpassed the key resistance level of $550 supported by higher trading volume.
- Momentum oscillators cooled off with BCH holding above major support levels including the 50 EMA.
- Closest support levels are located at $545 and $530.
Bitcoin Cash (BCH) successfully surpassed the key resistance level of $550, which was a significant breakthrough as it was supported by higher trading volume. This indicated a change in the overall market sentiment to a more bullish one. The momentum oscillators had the required space to cool off before the next leg up. As long as BCH managed to hold above all major resistance-turn-support levels, including the 50 EMA line, there were no red flags about imminent trend reversals. The closest support was located at $545 and $530, which is where most of the buyers were expected to step in if BCH witnessed a pullback.
Bitcoin Cash surged through multiple resistance levels this week to post a 17% gain from $506 to $591. Price reached the first major resistance zone at $520–530 and gave traders an opportunity to reassess. Next hour the price jumped up by $30 as trading volume exploded well above average levels. This confirmed what the technical analysts had been expecting – the price had broken out of the consolidation pattern. News of the confirmed breakout with a volume surge reinforced positive sentiment, though profit-taking pulled price back to the breakout zone a few hours later.
| Metric | Value |
|---|---|
| Asset | BITCOIN CASH (BCH) |
| Current Price | $591.36 |
| Weekly Performance | 8.73% |
| Monthly Performance | 16.98% |
| RSI (Relative Strength Index) | 61.3 |
| ADX (Average Directional Index) | 20.6 |
| MACD (MACD Level) | 14.14 |
| CCI (Commodity Channel Index, 20-period) | 185.33 |
RSI at 55.05 Signals Room for Further Upside After Cooling From 87
With the oscillator resetting, lesser-discussed metrics point towards more sustainable uptrend conditions as PBAD, NACDL, and NVOL remain into and hovering around double-digit 10.66, 11.38, and 15.93 respectively. These levels signal ideal bullish life within the trend; these conditions typically see price swiftly return to new highs while the oscillator remains correlated. co.finished at $145.82 last week amidst numerous eyes on the opener and the acceleration through $148.75. That open print at $147.5 has multiple tests now for the market to prove it as either a top or a base. A Read Reversal through $146 alerts higher and a key support test around $142.50 checking this higher low is forming.
What is interesting to note is how RSI reacted given the latest price action – it shed 32 points whereas BCH retreated just 3% from the top. We saw the same setup in September which led to a further rally once the oscillator settled in the vicinity of 50–55. For swing traders, such a neutral RSI suggests that entries around the current levels make for good risk-to-reward ratio as the momentum is neither overbought nor oversold.
ADX at 20.58 Shows Trend Building From Recent Choppy Conditions
The trend strength indications would also imply that BCH/USD has room to run from a longer-term perspective. This is the first time ADX has crossed over 20 since late August when the pair was on its way down from $500. As the mid-term downtrend matured, the gauge surpassed 30 and remained high into late September before eventually crashing down to 10. This shows BCH is not the best at holding a trend and was one more reason volume likely wasn’t keeping up with the move up from the floor. Digging into the ADX details, the crossover has +DI rising to 24.21 and -DI falling to 10.28, confirming that the buyers have taken the reins. In simple terms, the ADX tells us that we are shifting from a choppy to a trending environment – exactly what breakout trading is built for. As this plays out, trend-following systems should begin to outperform mean reversion, particularly in its early stages as the move gains momentum and ADX continues higher to the 25–30 range – a level at which solid trends normally hold.
Price Holds Above All Major EMAs in Bullish Stack Formation
The 50-day moving average is often seen as a barometer for the medium-term trend. While the 200-day moving average indicates the long-term trend, the 50-day moving average shows the average trend of the last 50 days after excluding weekends and holidays. This makes it a popular choice for identifying inflection points and executing trades among short- to mid-term-focused traders. What is most constructive is the collapse between the 20-day ($538) and 50-day ($531) EMAs. As these intermediate averages come together while price is above both it is often before strong trending action. The former resistance zone at $531 now becomes a red line for the bulls to defend—any daily settle below would turn the picture from friendly to neutral and probably get the stops going from breakout buyers over the last few days.
Resistance Stacks Between $640 and $761 While Support Builds at $530
There are several resistance levels above the current price which could potentially stop further increase. The closest one is at $607, which is the high from December as well as a round number. Next, the monthly R1 pivot is at $639, while the 50% level of the Fibonacci is also at that price. This is where the first higher point of today’s downtrend is. Finally, the cup and handle pattern projected increase would take the price to $660, which is between the first and second resistances. After two days of cautious, quiet price action post-breakout, buyers began to engage in approximate measure/high-to-low target buying at yesterday’s session low. There’s nothing bearish about a down day immediately following a 12-day breakout resulting in overbought conditions on the hourly RSI, but it does reinforce that the situation is ripe for excessive intraday selling if one-sided short-term buyers are caught in the crossfire.
Importantly, the price structure indicates buyer’s power as they are able to maintain $530 above in any retracement. On the weekly chart, BCH has just printed its first higher low since the April swing high, hinting that the macro downtrend may be coming to an end. This higher low becomes even more significant when one takes into account the recent GoPlus hack news, not causing any substantial long liquidation as there was even less selling.
Bulls Need Daily Close Above $607 to Target $640 Resistance Cluster
If the price closes above the December high of $607, bulls will likely be emboldened to challenge the resistance area of $639–640, where monthly pivots meet. The breakout momentum will continue as long as the BCH price remains above $530, and if it goes above $640, $660 is an easy next target. Increasing volume will support the breakout theory, especially given the declining influence of Mt. Gox complications on other digital currencies. The support test is currently holding, with ADX still set up to capture a new uptrend wave. While emerging sell signals are apparent in price action, BOT and WaveTrend were both printing peaked readings leading into the recent high. Price successfully back-tested the 20-day EMA at $550, managing to close the daily back above it after printing a doji that often signals reversal.
Based on the TA standpoint, BCH has positioned for solid support growing rally, facing only minor resistance around current levels leftover from prior price action. The technical landscape is positive, with the coin continuing to be one of the strongest major cryptocurrency plays. The re-establishment of levels above early July highs, also top of the early May price range, has likely set the floor for BCH in this latest bullish phase.
