Bitcoin cash price started a strong rally from $300 and it gained more than 15%, whereas BTC is struggling near $8,700. BCH/USD could continue to rise towards $400 in the near term.
- Bitcoin cash price is up more than 15% and it broke the $350 resistance area against the US Dollar.
- The price is showing a lot of positive signs above the $330 level and the 100 SMA (4-hours).
- There was a break above a major declining channel with resistance near $324 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to accelerate towards $400 if it clears the $365 resistance area.
Bitcoin Cash Price Could Revisit $400
After getting rejected near $405, bitcoin cash price started a strong downside correction. BCH declined nearly $100 before the bulls took a stand near the $300 support.
A swing low is formed near $300 and the price restarted its upward move. It broke a major resistance area near the $320 level and the 100 simple moving average (4-hours) to move into a positive zone.
Moreover, there was a break above a major declining channel with resistance near $324 on the 4-hours chart of the BCH/USD pair. It opened the doors for more gains above the 50% Fib retracement level of the key decline from the $404 high to $299 swing low.
Bitcoin cash price is now above the $350 level, but it is now facing a strong resistance near $365. It represents the 61.8% Fib retracement level of the key decline from the $404 high to $299 swing low.
If there is a successful break above the $365 resistance, the price is likely to continue higher towards the main $400 resistance area in the near term
Losses Could Be Limited In BCH
There are slight chances of a minor correction if BCH bulls struggle to push the price above $365 resistance. In the mentioned case, an initial support is near the $350 level.
If there is an extended downside correction, bitcoin cash price might dive towards the $330 support. The main buy zone for the bulls is near the $320 level and the 100 simple moving average (4-hours).
Hourly MACD – The MACD for BCH/USD is currently gaining strong pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level, with a bullish angle.
Key Support Levels – $350 and $330.
Key Resistance Levels – $365 and $400.