- Bitcoin cash price traded lower and tested the $550 support area against the US Dollar.
- There is a major bullish trend line with support at $570 forming on the hourly chart of BCH/USD (data feed from Kraken).
- The price might continue to correct higher and most likely to test the $615 resistance zone.
Bitcoin cash price is currently correcting above $560 against the US Dollar. BCH/USD needs to gain momentum above $600 to gain traction.
Bitcoin Cash Price Resistance
We saw a major decline in Bitcoin cash price this past week below $600 against the US Dollar. The price was under a lot of bearish pressure and even tested the $550 support. The stated $550 support acted as a barrier for sellers and later resulted in the start of a correction. The price already tested the 23.6% Fib retracement level of the last decline from the $721 high to $551 low.
However, a tiny connecting bearish trend line with resistance at $590 protected gains. On the downside, there is a major bullish trend line with support at $570 forming on the hourly chart of BCH/USD. The trend line support at $570 is acting as a crucial hurdle for downsides and might push the pair higher. Above the first bearish trend line lies the 38.2% Fib retracement level of the last decline from the $721 high to $551 low at $616. It is below another bearish trend line at $620 on the same chart.
Overall, it looks like there is a major resistance forming near $600-620. The price has to break $600 and then $620 to gain traction in the near term. On the downside, the $550 level is the most important support.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving higher towards the 50 level.
Major Support Level – $550
Major Resistance Level – $620
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.