- 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.
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