Bitcoin Cash Price Technical Analysis – BCH/USD Correction Initiated




Bitcoin cash price after trading as high as $941 started a correction against the US Dollar. BCH/USD might test $640-650 before resuming trend.
Bitcoin Cash Price Technical Analysis BCH USD

Key Points

  • Bitcoin cash price after rocketing above the $900 level against the US Dollar started a correction wave.
  • There was a break below a major bullish trend line at $740 on the hourly chart of BCH/USD (data feed from Kraken).
  • The price might correct further in the near term towards the $640 support or the 100 hourly simple moving average.

Bitcoin cash price after trading as high as $941 started a correction against the US Dollar. BCH/USD might test $640-650 before resuming trend.

Bitcoin Cash Price Support

Recently, we saw a nasty run in Bitcoin cash price as it moved above the $900 level against the US Dollar. The price traded as high as $941 and then started correcting lower. It moved down and traded below the 23.6% Fib retracement level of the last wave from the $590 low to $941 high. It opened the doors for an extended correction. During the downside move, the price even settled below the $800 support and traded towards $680.

There was also a break below a major bullish trend line at $740 on the hourly chart of BCH/USD. The price even broke the 61.8% Fib retracement level of the last wave from the $590 low to $941 high. It means there is a chance that the price could retest the last swing low of $640. Below $640, the 100 hourly simple moving average is positioned to act as a strong support.

Bitcoin Cash Price Technical Analysis BCH USD

On the upside, there is a connecting bearish trend line forming with resistance at $760. A break above it might call for trend resumption towards $800 or higher. Overall, buying dips towards the $640 level or the 100 hourly simple moving average might be considered with a stop below $600.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is about to move back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently below the 50 level, but moving higher.

Major Support Level – $640

Major Resistance Level – $760

 

Charts courtesy – Trading View, Kraken

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Aayush Jindal

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets.

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