- Bitcoin cash price extended gains above the $550 resistance and traded towards $600 against the US Dollar.
- There was a break above a bullish pennant pattern with resistance at $522 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair traded as high as $592 and it is currently correcting lower towards key supports.
Bitcoin cash price is placed nicely above the $540 support against the US Dollar. BCH/USD remains supported on dips near the $540 and $525 levels.
Bitcoin Cash Price Analysis
There was an increase in buying interest for bitcoin cash price above the $520 level against the US Dollar. The BCH/USD pair completed a downside correction yesterday at $510. Later, the pair gained traction and made a nice upside move above the $525 and $540 levels. The price action was such that buyers gained control above the $540 level and the price gained substantially.
During the rise, there was a break above a bullish pennant pattern with resistance at $522 on the hourly chart of the BCH/USD pair. The pair broke the $580 resistance and traded close to the $600 level. A new weekly high was formed at $592 before the price corrected lower. It moved down below the 23.6% Fib retracement level of the last wave from the $503 low to $592 high. On the downside, there are many supports above the $540 level. An immediate support is at $550. Below this, the 50% Fib retracement level of the last wave from the $503 low to $592 high is at $547.
Looking at the chart, BCH price is trading in an uptrend above the $540 level. On the upside, a break above $590 and $600 could accelerate gains in the near term.
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 well above the 50 level.
Major Support Level – $540
Major Resistance Level – $590