Bitcoin Cash Analysis: Promising Resistance Breakout


Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies.

What has become known:
→ on the eve of the hearing, Gary Gensler was sent a letter from four members of the US Congress demanding approval of applications for ETFs based on cryptocurrencies;
→ the head of the SEC avoided answering questions about the timing of decisions on these applications, although he noted that if the agency’s work was stopped on October 1 (like other government agencies), this would slow down the process;
→ for participants in the cryptocurrency market, the event could have given a positive impetus if Gensler’s words had contained hints of positivity, but he once again spoke out about the dangerous prohibited practices that crypto firms use.

However, a source of positivity in the market could be the strong price action in the Bitcoin Cash market. As the BCH/USD chart shows:
→ the price broke through the important level of USD 225, which served as resistance;
→ before the breakdown, a series of rising lows was formed (shown by marks), which can be interpreted as demand pressure. The dynamics are similar to the bullish cup-and-handle pattern;
→ the price went up from the downward channel (shown in red);
→ the price movement from the summer high can be considered a pullback, which found support at the Fibo level of 0.382.

The above bullish arguments suggest that the BCH price may resume its upward trend after a protracted pullback. Then it is possible that the price of Bitcoin Cash will be able to reach its summer high.

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