Market Enters Consolidation Phase

Bitcoin Cash (BCH) is showing signs of recovery after establishing a recent low at $443. The cryptocurrency is currently navigating a tight trading range, finding support at the 50-day Simple Moving Average (SMA) while facing resistance from the 21-day SMA. This price action has confined BCH primarily between the $440 and $560 levels.

Currently trading near $557, the asset is pushing against the upper boundary of its consolidation zone. A decisive move above the 21-day SMA is critical for buyers to maintain momentum. If they succeed, the next significant target could be the $650 price level.

Technical Indicators Point to Potential Breakout

Since mid-October, Bitcoin Cash has been caught between these two key moving averages. An earlier attempt by sellers to break below the 50-day SMA support was unsuccessful, and buyers have since regained control, driving the price upward. On the 4-hour chart, the moving averages are sloping upward, which typically indicates a positive trend. The placement of the 21-day SMA above the 50-day SMA further reinforces this bullish sentiment.

Next Direction Hinges on $540 Hurdle

The immediate path forward for Bitcoin Cash depends on its ability to overcome the resistance near $540. Having already broken past the $510 level, a sustained push above $540 would serve as a strong confirmation of bullish strength. Failure to clear this hurdle, however, could lead to a rejection and a potential retest of lower support zones. Traders are closely watching this level as a key indicator for the asset’s next major move.

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