Bitcoin Cash Price Holds Key Support, Hints Rally for BCH Holders

Bitcoin Cash price has demonstrated marked volatility recently. The trading patterns oscillated between bearish and bullish sentiments, echoing the broader cryptocurrency market’s dynamics. 

This aligns with other major cryptocurrencies, which are also trading sideways, reflecting a phase of uncertainty and consolidation among investors.

Bitcoin Cash Price Sees Fluctuations: What’s Next for BCH?

BCH is currently experiencing a rebound, having recently maintained its value above a crucial support level for the last two weeks. Bitcoin Cash price has begun to recover after testing an essential support level. This period of decline prompted widespread selling across the cryptocurrency market. 

The Coinglass data reveals significant movements in trading volume and open interest. The volume has substantially increased by 10%, reaching $388.62 million. This indicates a robust growth in trading activity and investor interest in BCH derivatives. 

The open interest, which measures the total number of outstanding derivative contracts that have not been settled, has decreased by 1.81% to $196 million, suggesting some traders may be closing their positions or shifting towards shorter-term contracts.

Over the past 24 hours, the cryptocurrency market has witnessed modest fluctuations, with Bitcoin Cash showing some volatility. As of the time of writing, the BCH price hovered at $330, a slight surge of 1% from the previous day. 

According to CoinMarketCap data, the trading volume for the same period increased by 3%, suggesting higher transactional activity despite the price decrease.

Will It Break the $340 Resistance Soon?

On the other hand, a breakout above the $330 resistance could indicate a bullish reversal. Such a move would likely propel the Bitcoin Cash price toward the key resistance point at $340. In an upcoming rally, sustained bullish momentum might see BCH’s value rise to $350.

The Relative Strength Index (RSI) is currently at 53, indicating a neutral momentum. This level suggests that Bitcoin Cash is neither overbought nor oversold.

The Moving Average Convergence Divergence (MACD) presents a divergence with the MACD line (blue) rising towards the signal line (orange), signalling a potential bullish reversal as the histogram moves closer to the baseline.

If Bitcoin Cash continues its downward trend, its price may soon test a support level of around $320. The lack of market support could increase the price to approximately $310. Persistent selling pressure might lower the value, potentially reaching a support level near $300.