- Bitcoin cash price is forming a base near the $410 support area against the US Dollar.
- There is a key bearish trend line forming with resistance near $425 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is about to break the $425 resistance to correct towards $435-440 in the near term.
Bitcoin cash price is slowly attempting a recovery against the US Dollar. BCH/USD needs to break $425 to gain upside momentum in the short term.
Bitcoin Cash Price Resistance
Recently, we saw a downside move in Bitcoin cash price towards the $400 handle against the US Dollar. The price traded as low as $410.8 where it found buyers and is currently attempting a recovery in the short term. However, an upside move won’t be easy since it is facing many hurdles like $425 and $440. To start with, there is a key bearish trend line forming with resistance near $425 on the hourly chart of BCH/USD.
The trend line resistance near $425 is very important. It is also near the 23.6% Fib retracement level of the last decline from the $453 high to $410 low. A break above the $425 resistance would encourage buyers to push the price towards $435. The mentioned $435 resistance is the next barrier. It is the 50% Fib retracement level of the last decline from the $453 high to $410 low. Once there is a break above the $435-440 resistance, there is a chance of further gains in the near term.
On the downside, the $310 low is a major support area. Should there be a close below $410, the price would easily test the $400 handle.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is about to reach the 50 level.
Major Support Level – $410
Major Resistance Level – $425
Charts courtesy – Trading View, Kraken