- BCH/USD short-term technical levels stay strongly positive despite the cryptocurrency market showing strong bearish signs.
- The 12 EMA divergence above the 26 EMA shows that the bulls are gaining traction.
Bitcoin Cash is in the green amid a market that is steadily becoming bearish. The crypto has battled to reverse the trend following the loss on April 11 when it found support at $260.00 (range support). In fact, a new trend has been forming above the trendline as well both the 12 moving average exponentials (EMA)-hour and the 26 EMA 4-hour. The trading yesterday pulled Bitcoin above the range resistance at $320. Further correction formed a high around $334.31 before the bears took over control.
Bitcoin Cash 4-hour outlook
The 4-hour timeframe shows BCH/USD trading slightly below the range resistance. Slight gains recorded above the short-term support at $300 have not been able to break past the hurdle at $320. Meanwhile, short-term technical levels stay strongly positive despite the cryptocurrency market showing strong bearish signs. The 12 EMA divergence above the 26 EMA shows that the bulls are gaining traction and are not ready to give up control anytime soon. The trendline support is also functioning as a bouncing wall and if tested is likely to stop declines.
The moving average convergence divergence (MACD) in the same 4-hour range is trending in an upward direction above the mean line (0.1). The move comes after a correction from the lows close to -7.52. The divergence of the signal line from the indicator shows the uptrend has a significant trend. In this case, if Bitcoin cash can break past the range resistance at $320, the move will most likely attract more buyers and increase their confidence of recovery towards $340 being a possibility.
Bitcoin Cash Key Technical Indicator
12 EMA 4-hour: $306.14
26 EMA 4-hour: $297.34
MACD 4-hour: +8.17
Key range: $260 – $320
Resistance 1: $320.00
Resistance 2: $334.31
Resistance 3: $340.00
Support 1: $300.00
Support 2: 280.00
Support 3: $260.00 (previous week support).