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- Bitcoin cash price is showing recovery signs from the $170 monthly low against the US Dollar.
- The price is currently consolidating above the $180 and $182 support levels.
- There is a key bearish trend line forming with resistance near $190 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to turn bullish once it settles above $190 and $195 in the near term.
Bitcoin cash price is attempting an upside break above $190, whereas bitcoin rallied above $7,000. BCH/USD could start another increase if it clears the $195 resistance.
Bitcoin Cash Price Analysis
This month, bitcoin cash price followed a bearish path below $220 against the US Dollar. BCH price broke many supports near the $200 and $195 levels to enter further into a bearish zone.
Moreover, there was a close below the $195 level and the 100 hourly simple moving average. Finally, there was a break below $180 and the price traded to a new monthly low near $170.
Recently, bitcoin price surged more than 10% and reclaimed the $7,000 support area. It prompted a strong rise in altcoins such as ripple, bitcoin cash, EOS, and Ethereum.
BCH price climbed above the $175 and $180 resistance levels to start the current recovery. Besides, it traded above the 23.6% Fib retracement level of the key decline from the $207 high to $170 low.
However, the price ran into the main $190 resistance area. Additionally, there is a key bearish trend line forming with resistance near $190 on the hourly chart of the BCH/USD pair.
More importantly, the price failed to gain strength above the 50% Fib retracement level of the key decline from the $207 high to $170 low. Therefore, the price must surpass the $190 and $195 resistance levels to move into a positive zone and start an uptrend.
On the other hand, the price could fail to surpass $190 and $195. In this case, the price is likely to resume its decline below $182 and $180. The main support is now near the $170 low, below which it could slide towards $165.
Looking at the chart, bitcoin cash price seems to be trading in a range below the main $190 and $195 resistance levels. A successful close above $195 could encourage the bulls in the near term.
Technical indicators
Hourly MACD – The MACD for BCH/USD is currently losing pace and sliding into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just above the 50 level, with a minor bearish angle.
Key Support Levels – $180 and $170.
Key Resistance Levels – $190 and $195.
