- Bitcoin cash price surged higher as forecasted yesterday above $1700 and $1900 against the US Dollar.
- This is a new major bullish trend line forming with support at $1720 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair is currently correcting lower, but it remains supported on the downside at $1700.
Bitcoin cash price made a sharp upside move above $1900 against the US Dollar. BCH/USD is currently correcting lower but remains buy at $1700.
Bitcoin Cash Price Support
Yesterday, I mentioned that bitcoin cash price is in an uptrend above the $1600 level against the US Dollar. The price made a nice upside move and was able to trade above the $1800 and $1900 resistance level. The upside move was strong as the price traded close to the $2000 level and made a high at $1997. Later, a downside correction was initiated and the price moved below the 23.6% Fib retracement level of the last leg up from the $1440 low to $1997 high.
However, there are many supports on the downside such as $1750 and $1720. There is also a new major bullish trend line forming with support at $1720 on the hourly chart of BCH/USD. The trend line support is around the 50% Fib retracement level of the last leg up from the $1440 low to $1997 high. Therefore, the $1720 support is likely to act as a strong barrier for more declines. Moreover, the $1700 handle is also a decent support. The last line of defense could be around the $1650 support.
On the upside, the price could bounce back above $1850 in the short term. Above $1850, the price will most likely test the $2000 handle.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently moving lower with a minor divergence.
Major Support Level – $1720
Major Resistance Level – $1850
Charts courtesy – Trading View, Kraken