Key Points
- Bitcoin cash price retested the $740 support zone and is currently holding gains against the US Dollar.
- There is a new connecting bullish trend line formed with support at $742 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair must stay above the $740-750 support and the 100 hourly simple moving average.
Bitcoin cash price is holding gains above $740 against the US Dollar. BCH/USD has to move above the $780 and $800 resistances to gain upside momentum.
Bitcoin Cash Price Support
There was an extended decline in bitcoin cash price below the $780 support against the US Dollar. The BCH/USD pair traded below the $750 support and even spiked below the $740 support. A low was formed near the $735 level and the price recovered from losses. It moved above the 23.6% Fib retracement level of the last decline from the $828 high to $735 low.
More importantly, it settled above the $740 support and the 100 hourly simple moving average. There was also a spike above the 61.8% Fib retracement level of the last decline from the $828 high to $735 low. However, the price failed to hold gains above the $800 level and declined once again. It is currently trading a few points above the $760 support and the 100 hourly SMA. There is also a new connecting bullish trend line formed with support at $742 on the hourly chart of the BCH/USD pair. Therefore, the price remains supported above the $740-750 support zone.
Looking at the chart, the price is struggling to overtake the $800 barrier, above which, the price may retest $828. On the downside, a break and close below the $740 support may perhaps ignite more declines towards the $700 level.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently flat in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just above the 50 level.
Major Support Level – $740
Major Resistance Level – $800
