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Key Points
- Bitcoin cash price gained traction and moved above the $500 barrier against the US Dollar.
- There is a key contracting triangle in place with support near $510 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to break higher towards the $575 and $600 levels in the near term.
Bitcoin cash price is trading in a bullish zone above $500 against the US Dollar. BCH/USD may continue to find buyers on the downside near $500 and $480.
Bitcoin Cash Price Decline
This past week, there was a solid rally in bitcoin cash price from the $400 support zone against the US Dollar. The BCH/USD pair surged above the $450 and $500 resistance levels to move into a positive zone. There was even a close above the $475 level and the 100 simple moving average (4-hours). The price traded as high as $592 and later started a downside correction.
It corrected below the 23.3% Fib retracement level of the last wave from the $424 low to $592 high. However, the downside move was protected by the $500-510 support area, which was a resistance earlier. Moreover, the 50% Fib retracement level of the last wave from the $424 low to $592 high also acted as a support. At the moment, there is a key contracting triangle in place with support near $510 on the 4-hours chart of the BCH/USD pair. The pair is likely to make the next move soon either above $550 or below $510. Above $550, the price will most likely revisit the $600 zone.
Looking at the chart, BCH price is showing a lot of positive signs above the $500 level. As long as the stated support is intact, there could be more gains towards $580, $600 and $620.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slightly in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is above the 50 level.
Major Support Level – $500
Major Resistance Level – $550
