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Bitcoin Cash will rise to $ 300 versus the US dollar if bulls break out and maintain momentum above $ 260
The price of Bitcoin Cash (BCH) could rise towards its August 2020 peak if the bulls manage to break out of a resistance line formed on August 2.
At the time of writing, the cryptocurrency is trading at $ 256, up about 5% in the past 24 hours.
If the bulls hold the bullish action, they are likely to push prices above the top line of a symmetrical triangle pattern. The line has been a major obstacle to the upside since BCH / USD fell from highs of $ 337 to lows of $ 206.
Over the past few days, BCH / USD has been consolidating near the base of the pattern, between $ 250 and $ 260. However, the bulls need a sharp breakout above $ 260 and aim to keep prices above the triangle. This should invite more buy orders which could push BCH to $ 300.
Bitcoin Cash price chart
4-hour chart of the BCH price. Source: TradingView
BCH is trading above the 50-SMA and 100-SMA on the 4-hour chart and could still grow higher. The 200-SMA ($ 258) is however above the price at the time of writing, which suggests that the bulls face resistance below the $ 260.
But the overall bullish outlook for this currency is reinforced by the bullish RSI trending above the midpoint. This scenario, in addition to a daily close above the upper trend line, will give the bulls new energy and provide the impetus needed to push higher.
BCH / USD 4-hour chart. Source: TradingView
The daily chart indicates that Bitcoin Cash is trading above 50-SMA, 100-SMA and 200-SMA. If the bulls hold prices above the three moving averages, currently residing near $ 254, the near-term outlook will remain bullish. In this case, it is possible that increasing buying pressure could see the price of BCH retest the $ 270 and $ 280 resistance levels.
While the $ 280 bidding zone could likely provide a tougher challenge to the bulls, a successful breakout here brings the $ 300 hurdle into play.
Bitcoin Cash daily price chart. Source: TradingView
On the downside, if the $ 250 supply zone crumbles under more sell-off pressure, the next major support area is at $ 240. An extended trading period below the symmetrical triangle pattern could provide the setup. bearish needed to push BCH price to $ 200 lows.
