Key Points
- Bitcoin cash price is positioned nicely above the $700 support with positive signs against the US Dollar.
- There is a new declining channel formed with resistance near $740 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair must clear the $740 and $750 resistance levels to move further higher in the bullish zone.
Bitcoin cash price is holding the $700 support against the US Dollar. BCH/USD must gain momentum above $750 to revisit the $800 resistance zone in the near term.
Bitcoin Cash Price Trend
There was a decent upside move above the $700 resistance in bitcoin cash price against the US Dollar. The BCH/USD pair traded above the $760 resistance and almost tested the $800 level. A high was formed at $784 before the price started consolidating gains. It corrected lower and moved below the 23.6% Fib retracement level of the last wave from the $649 low to $784 high.
However, the decline was protected by the $720 support zone. More importantly, the 50% Fib retracement level of the last wave from the $649 low to $784 high acted as a strong support. At the moment, it seems like there is a new declining channel formed with resistance near $740 on the hourly chart of the BCH/USD pair. The pair is currently attempting an upside break above the $740 resistance. BCH buyers must clear the $740 and $750 resistance levels to take the price towards $800 in the near term.
Looking at the chart, the price is placed nicely in a bullish zone above $700. An initial support is at $720, below which the price could retest the $700 support. Any further declines may perhaps push the price back in a bearish zone towards $650.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently flat in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now above the 50 level.
Major Support Level – $700
Major Resistance Level – $750
