- Bitcoin cash price after consolidating just below the $300 level gained heavy bids against the US Dollar.
- There was a break above a major bearish trend line at $300 on the hourly chart of BCH/USD (data feed from Kraken).
- The price rocketed higher and broke many hurdles on the way up towards $500.
Bitcoin cash price surged higher by more than $200 against the US Dollar. BCH/USD is currently trading below $500 and remains buy on dips.
Bitcoin Cash Price Break Shackles
During the past few days, we saw a consolidation below the $300 level in Bitcoin cash price against the US Dollar. The price after consolidating for a long time gained heavy bids and made a solid upside move above $300. During the upside move, it broke many hurdles like $350 and $400. Yesterday’s highlighted major descending channel pattern with resistance at $301 on the hourly chart of BCH/USD was breached.
The most important break was above a crucial bearish trend line at $300 on the same chart. It cleared the bearish bias and set the path for more gains above $400. The price made a solid uptrend and traded higher by more than $200. A high was formed at $519.31 where sellers appeared. It seems like there is a slight correction possible towards $460-450 in the near term.
An initial support is around the 23.6% Fib retracement level of the last wave from the $290 low to $519 high. Any further downside would be limited by $440, which is also around the 38.2% Fib retracement level of the last wave from the $290 low to $519 high. Buying dips in the short term towards $460-440 might be considered.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD moved sharply in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is placed well in the overbought levels.
Major Support Level – $440
Major Resistance Level – $520
Charts courtesy – Trading View, Kraken