Bitcoin Cash Price Technical Analysis – BCH/USD To Retest $580?




Bitcoin cash price recovered well from $500 against the US Dollar. BCH/USD now faces another upside hurdle around the $580 level.
Bitcoin Cash Price Technical Analysis BCH USD

Key Points

  • Bitcoin cash price after trading as low as $501 against the US Dollar found buyers and recovered.
  • There is a bearish trend line waiting on the upside at $580 to act as a resistance on the hourly chart of BCH/USD (data feed from Kraken).
  • On the downside, the $520 level is a good support zone in the near term.

Bitcoin cash price recovered well from $500 against the US Dollar. BCH/USD now faces another upside hurdle around the $580 level.

Bitcoin Cash Price Resistance

There was a sharp downside move in Bitcoin cash price towards $520-500 against the US Dollar. The price after trading as low as $501 found buyers and later started correcting higher. It managed to break the 23.6% Fib retracement level of the drop from the $678 high to $501 low. It has opened the doors for more upsides towards $580-600 in the near term.

Recently, there was a break above a bearish trend line at $540 on the hourly chart of BCH/USD. It further helped the pair in recovering above the $550 level. At the moment, the pair is trading just below the 38.2% Fib retracement level of the drop from the $678 high to $501 low. On the upside, there is another bearish trend line waiting at $5801 to act as a barrier for buyers. Above $580, the 50% Fib retracement level of the drop from the $678 high to $501 low is at $588.

Bitcoin Cash Price Technical Analysis BCH USD

Therefore, there are chances of BCH facing a lot of offers near $580-588 if it continues to move higher from the current levels. On the downside, the $520 level is a good support area and buy zone.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is now back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is moving higher and is currently well above the 50 level.

Major Support Level – $520

Major Resistance Level – $580

 

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.

SUBSCRIBE TO OUR NEWSLETTER