- Bitcoin cash price is trading in a tiny range above the $320 level against the US Dollar.
- There is a major contracting triangle pattern with resistance near $360 forming on the hourly chart of BCH/USD (data feed from Kraken).
- A break and close above the $360 level might call for more gains in the near term.
Bitcoin cash price is slowly preparing for gains against the US Dollar. BCH/USD may soon break $360 and attempt a move above $400.
Bitcoin Cash Price Upside Hurdle
It seems like Bitcoin cash price is preparing for a break towards the $400 level against the US Dollar. The price is currently trading in a tiny range above the $320 level. Recently, it dipped from the $438 high and moved below the $400 level. There was even a break below the 50% Fib retracement level of the last wave from the $240 low to $438 high.
However, as mentioned in the last analysis, the decline is protected by the $320 level and the 100 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last wave from the $240 low to $438 high is acting as a support. At the moment, there is a major contracting triangle pattern with resistance near $360 forming on the hourly chart of BCH/USD. If buyers gain pace and the price succeed in breaking the $360 level, there could be gains towards $400.
On the downside, the triangle support is near $340. A break below $340 would take the price back towards the 100 hourly simple moving average. Any further losses would be limited considering the support base near $300.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is now preparing to move from the bearish to bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is just around the 50 level.
Major Support Level – $320
Major Resistance Level – $360
Charts courtesy – Trading View, Kraken