Bitcoincash rally 20% near main resistance zone 📊

1:34 PM 21 June 2023

One of the oldest cryptocurrencies, Bitcoincash is trading at a dynamic high today, with its price settling after approaching a key resistance zone. In 24 hours, the project's capitalization increased by nearly $500 million. Such a dynamic rally can be linked to several pieces of information.

  • The sentiment of the crypto market is noticeably better today, with Bitcoin rising to $29,000. More institutions in the U.S. are applying to set up Bitcoin ETFs (BlackRock, Fidelity, and today there was also news of Invesco - WisdomTree);
  • Bitcoincash will be one of four cryptocurrencies (Bitcoin, Ethereum, Litecoin) traded on the institutional cryptocurrency exchange EDX Markets behind which are key Wall Street institutions (Charles Schwab, Citadel, Fidelity etc.);
  • In May, there were key technological updates to the project. Bitcoincash reported an update focused on the so-called CashToken, which is expected to expand the network with additional applications built on Bitcoincash, which, according to the developers, are ultimately expected to be similar to but cheaper and more easily scalable than Ethereum itself, which has gained a lot of support from developers and is considered one of the fastest growing projects on the technology side.

Looking at the chart of BITCOINCASH on the H4 interval, we can see that the price broke out dynamically above the SMA200 (red line), but the increases stopped at a key resistance level, i.e. the 23.6 Fibonacci retracement of the upward wave from the fall of 2022, and are currently testing the 38.2 Fibo level at $128. The $138 level remains a major resistance zone, also determined by previous price reactions.

Source: xStation5

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