- Bitcoin cash price broke a major resistance area at $340 against the US Dollar and surged higher.
- There was a break above a crucial bearish trend line with resistance at $345 on the 4-hours chart of BCH/USD (data feed from Kraken).
- The pair is now back in the bullish zone above the $350 support area.
Bitcoin cash price surged higher and broke a key resistance at $340 against the US Dollar. BCH/USD has now turned buy on dips in the short term.
Bitcoin Cash Price Support
This past week, we saw many attempts by Bitcoin cash price to break the $340-350 resistance against the US Dollar. The price did move higher and manage to break the mentioned $340 and $350 resistance levels. The upside move was very positive and the price even succeeded in clearing the $400 handle. There was also a close above $350, $380 and the 100 simple moving average (4-hour).
Moreover, there was a break above a crucial bearish trend line with resistance at $345 on the 4-hours chart of BCH/USD. All this means that the pair is back in the bullish zone above $350. It traded as high as $425.10 recently and is currently correcting lower. An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the $306 low to $425 high near $395-400. The stated fib level and the $395 support is a key area since it was also a resistance earlier.
Below $395, the most important support is near $365. It is also the 50% Fib retracement level of the last wave from the $306 low to $425 high. Overall, buying dips in the short term toward $380-365 can be considered.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is now back in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently in the overbought levels.
Major Support Level – $365
Major Resistance Level – $425
Charts courtesy – Trading View, Kraken