Key Points
- Bitcoin cash price rallied above the key $600 resistance against the US Dollar.
- There is a major bullish trend line formed with support at $580 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may correct lower, but dips towards the $580 zone remain supported in the near term.
Bitcoin cash price is placed heavily in an uptrend above $550 against the US Dollar. BCH/USD traded as high as $629 before it started a downside correction.
Bitcoin Cash Price Analysis
Yesterday, we discussed about more gains above the $560 resistance in bitcoin cash price against the US Dollar. The BCH/USD pair started a fresh upward move and traded above the $580 and $600 resistance levels. A new monthly high was formed at $629 before the price started a downside correction. However, the price is still trading well above the $550 support and the 100 hourly simple moving average.
On the downside, an initial support is near the 23.6% Fib retracement level of the recent upside from the $541 low to $629 high. Moreover, there is a major bullish trend line formed with support at $580 on the hourly chart of the BCH/USD pair. The trend line support is near the 50% Fib retracement level of the recent upside from the $541 low to $629 high. Therefore, if the price declines from the current levels, it could find a strong support near the $580 zone. Below the stated zone, the price may revisit the key $550 support and the 100 hourly SMA.
Looking at the chart, BCH price is placed in an uptrend above the $550 support. Dips from the current levels remain supported near $580 and $575. On the upside, the price could test $650 if there is a break above $630.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is still above the 50 level.
Major Support Level – $580
Major Resistance Level – $630
