Bitcoin Cash, as most people know, is a hard fork of Bitcoin created in November 2018, and designed to increase the transaction speed. Bitcoin cash is mostly similar to the original Bitcoin, but it was changed so that instead of the original 1MB block size of Bitcoin, BCH's block size is designed to range between 8 and 32 MB. With this block structure, Bitcoin cash can theoretically reach 12,800 transactions per minute or about 18 million transactions per day.
Fig 1 - Bitcoin Cash 4H Chart
On the 4H chart, we can see that Bitcoin cash is moving in an ascending channel since its heavy fall in March. The last drop that corresponds to the mini-crash the market experienced last Sunday, the price went from the top line of the regression channel to its bottom where it settled and formed a base. On Wednesday, that base range was broken to the upside, and today it is still moving with an ascending bias.
We see the price has moved above its 200-period SMA and has bounced at its 50-SMA, as the RSI climbs.
Buyers may be waiting till the $245.6 is broken to go long this asset. That will put the price above both its 50- and 200 SMA, confirming the bullish leg to, hopefully, the top of the channel. The invalidation level is below $230, and the potential target of $270 would give a reward/risk ratio of 1.6.
Next resistance: $245.6
Last Support: 230.6
Bottom of the channel: 226
Top of the Channel: 276