What's Next For Bitcoin Cash After Bouncing At Support

Bitcoin Cash (CRYPTO: BCH) is trading higher Friday alongside the rest of the cryptocurrency market. The majority of the market is trading green and Bitcoin (CRYPTO: BTC) leads the way up over 5% on the day.

Bitcoin Cash was up 1.47% at $557 at last check.

Bitcoin Cash Daily Chart Analysis

• Bitcoin Cash saw a bounce near support and has since started making higher lows toward resistance.
• The crypto trades above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the crypto is likely facing a period of consolidation.
• Bitcoin Cash may find support near the 50-day moving average, but the 200-day moving average may hold as a resistance level.
• Bitcoin Cash found support at the $400 level and bounced higher. If higher lows continue, the stock may not see a strong resistance level until near $800.
• The Relative Strength Index (RSI) has been moving higher the past few days and now sits at 63. This means there have been many buyers moving into the crypto and now there are more buyers than sellers.

What’s Next For Bitcoin Cash?

Bullish traders are looking to see Bitcoin Cash continue to form higher lows and start heading back toward resistance. If the crypto can break above resistance and hold above the level, the crypto could be ready for its next leg up.

Bearish traders would like to see the crypto start to fall again and fall below support. If Bitcoin Cash can fall below support and begin to hold it as a resistance level, the stock could see a further drop.