BUY BITCOIN
Key Points
- Bitcoin cash price found a decent support near the $500-510 zone and bounced back against the US Dollar.
- There was a break above a key bearish trend line with resistance at $545 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is gaining momentum and it seems like it could revisit the $600 zone in the near term.
Bitcoin cash price formed a base near $500 against the US Dollar. BCH/USD is showing positive signs for a test of the $580 and $600 levels.
Bitcoin Cash Price Trend
After a significant decline, bitcoin cash price found support near the $500 and $510 levels against the US Dollar. The BCH/USD pair formed a low at $509 and later it started an upside move. The price traded higher and broke the $520 and $530 resistance levels. There was a break above the 38.2% Fib retracement level of the last decline from the $611 high to $509 low.
Moreover, there was a break above a key bearish trend line with resistance at $545 on the hourly chart of the BCH/USD pair. The pair gained traction and broke the $550 level and the 100 hourly simple moving average. At the moment, the price is trading with a positive bias above the $550 level. An hourly close above the 50% Fib retracement level of the last decline from the $611 high to $509 low is needed for more gains. Above $560-570, the price will most likely accelerate towards the next resistance at $580 and $600.
Looking at the chart, BCH price is could continue to move higher if buyers remain in action above $560. If there is a downside reaction, the broken resistances at $540 and $530 are likely to act as supports.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is moving nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level.
Major Support Level – $540
Major Resistance Level – $570
