Analysis Technical

Bitcoin Cash Price Analysis: Can BCH/USD Recover?

Aayush Jindal | May 25, 2018 | 4:08 am
technical analysis bitcoin cash
Analysis

Bitcoin Cash Price Analysis: Can BCH/USD Recover?

Aayush Jindal | May 25, 2018 | 4:08 am

Key Points

  • Bitcoin cash price found support near $950 and started an upside move against the US Dollar.
  • This week’s crucial bearish trend line with resistance at $1,040 was breached on the hourly chart of the BCH/USD pair (data feed from Kraken).
  • The pair is now trading above the $1,020 resistance and it may correct further in the near term.

Bitcoin cash price is recovering nicely from $950 against the US Dollar. BCH/USD could recover further as long as the price is above $1,020.

Bitcoin Cash Price Support

After a major slide, bitcoin cash price found support near the $950 level against the US Dollar. The price traded as low as $947.3 where buyers appeared and prevented declines. A fresh upward correction was started and the price moved above the $980 and $1,000 resistance levels. It even succeeded in moving above the 23.6% Fib retracement level of the last decline from the $1,190 swing high to $947 low.

More importantly, this week’s crucial bearish trend line with resistance at $1,040 was breached on the hourly chart of the BCH/USD pair. At the moment, the price is trading just above the $1,050 level and is showing positive signs. It has to settle above the 50% Fib retracement level of the last decline from the $1,190 swing high to $947 low to gain momentum. On the upside, there is a strong resistance zone near $1,080 and $1,100. A break above the $1.100 resistance level could open the doors for more gains in the near term.

Bitcoin Cash Price Analysis BCH USD

Looking at the chart, the price is slowly recovering and it could move towards $1,100 and $1,120. However, any further upsides above $1,100 and the 100 hourly simple moving average won’t be easy.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slowly moving back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now back above the 50 level with positive signs.

Major Support Level – $1,000

Major Resistance Level – $1,100

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