BCH Price Analysis: Bulls Attempt to Secure Gains Above $120, Further Recovery Possible131

Key Points:* BCH price faces resistance at $120, but bulls remain optimistic.
* Technical indicators suggest further upside potential, with support around $112 and $108.
* A break above $125 could pave the way for a rally towards $130 or even $140.

The Bitcoin Cash (BCH) market has been witnessing a period of consolidation following a recent price surge. The cryptocurrency has been hovering around the $120 level, with buyers and sellers engaged in a tug-of-war. However, technical indicators suggest that the bulls are holding the upper hand and further recovery is possible in the coming days.

BCH Price Analysis

On the daily chart, BCH price has formed a bullish pennant pattern, which is a continuation pattern that typically indicates a breakout in the direction of the prevailing trend. The cryptocurrency has been trading within the pennant for the past few days, with support around $112 and resistance at $120.

The Relative Strength Index (RSI) is currently hovering around 55, indicating that the market is in a state of equilibrium. The Moving Average Convergence Divergence (MACD) indicator is also showing a bullish crossover, suggesting that the momentum is shifting in favor of the buyers.

If the bulls can successfully break above the $120 resistance level, it could pave the way for a rally towards $130 or even $140. On the other hand, a break below the $112 support level could lead to a pullback towards $108 or even $100.

BCH Outlook

The overall technical outlook for BCH is positive. The cryptocurrency is trading within a bullish pennant pattern, and the technical indicators are suggesting that further upside potential exists. A break above the $120 resistance level could trigger a significant rally, while a break below the $112 support level could lead to a pullback.

Traders should keep a close eye on the price action over the next few days to determine whether the bulls or the bears will gain the upper hand. A break above $120 could provide a strong buy signal, while a break below $112 could indicate that a pullback is imminent.

2024-12-25

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