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Bitcoin Cash Breaks Out: Key Resistance at $118

• Bitcoin Cash is attempting a recovery wave above the $112 resistance against the US Dollar.
• There is a key bearish trend line forming with resistance near $116 on the 4-hour chart of the BCH/USD pair.
• The pair must clear $116 and $118 to start a steady upward movement in the near term.

Bitcoin Cash Analysis

Bitcoin cash is attempting a recovery wave above the $112 resistance against the US Dollar. The price is now trading above the $114 zone and the 55 simple moving average (4 hours). There is a key bearish trend line forming with resistance near $116 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase). The pair must clear $116 and $118 to start a steady upward movement in the near term.

Price Analysis

Bitcoin cash price formed a decent support base above the $110 level. BCH started a decent increase and was able to clear the $112 resistance zone. The price climbed above the $114 resistance level. There was a move above 50% Fib retracement level of downward move from swing high to low. It is now trading above both,the 114 zone and 55 simple moving average (4 hours). On upside, there is resistance at 116 level as well as bearish trend line formation with same resistance near 116 on 4-hour chart of BCH/USD pair. To rise further, it should break 118 level which can set momentum for 126 levels too. On downside, 113 level can be seen as immediate support followed by 110 levels if bears take control again .

Technical Indicators

The MACD for BCH/USD is gaining pace in bullish zone while RSI for BCH/USD is still crossing 50 levels on hourly charts.

Key Support & Resistance Levels

The key support levels are at 113 and 110 while key resistances are at 116 & 118 respectively .

Conclusion

To sum up, Bitcoin Cash’s price needs to break higher than both, 116 & 118 levels to continue its upward surge in short term else it may decline back again below 110 or 112 mark .