- Bitcoin cash price is consolidating above the $320 support area against the US Dollar.
- There is a short-term contracting triangle forming with resistance near $335 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might dip once more before moving higher above the $330-340 levels.
Bitcoin cash price is moving in a range above $320 against the US Dollar. BCH/USD needs to gain pace above $335 to avoid near-term declines.
Bitcoin Cash Price Resistance
Yesterday, we saw how after a sharp decline Bitcoin cash price held the $310-300 support area against the US Dollar. The price recovered above $330, but failed to move above the 50% Fib retracement level of the last drop from the $401 high to $305 low. The upside move was limited and the price started trading in a range below the $350 level.
It has moved down and settled below the 50% Fib retracement level of the last wave from the $305 low to $359 high. However, the downside move was limited by the $320 support and the 61.8% Fib retracement level of the last wave from the $305 low to $359 high. It seems like there is a short-term contracting triangle forming with resistance near $335 on the hourly chart of BCH/USD. The pair might continue to trade in a range above $320 for the next few hours.
Later, it could make a small dip towards $320-315 before starting a new upside wave. On the downside, there is a major support forming near $310-300. A break below $300 won’t be easy and the price is likely to trade higher in the near term. On the upside, the $340-350 resistance zone holds the key for more gains.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is mostly flat.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently directionless below the 50 level.
Major Support Level – $310
Major Resistance Level – $335
Charts courtesy – Trading View, Kraken