Bitcoin Cash Analysis: Promising Resistance Breakout

<img src="https://fxopen.com/blog/en/content/images/2023/09/bitcoin-cash-1024×538.jpg" alt="Bitcoin Cash Analysis: Promising Resistance Breakout" /><p>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.</p><p>What has become known:<br>→ 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;<br>→ 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;<br>→ 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.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/09/282.png" alt="Bitcoin Cash Analysis: Promising Resistance Breakout" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/09/282.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/09/282.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/09/282.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/09/282.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>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:<br>→ the price broke through the important level of USD 225, which served as resistance;<br>→ 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;<br>→ the price went up from the downward channel (shown in red);<br>→ the price movement from the summer high can be considered a pullback, which found support at the Fibo level of 0.382.</p><p>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.</p>