Key Points
- Bitcoin cash price found support near the $460 level and recovered a few points against the US Dollar.
- There is a connecting bearish trend line formed with resistance near $488 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair has to move above the $488 and $500 resistance levels to recover further in the near term.
Bitcoin cash price is struggling to gain traction above $500 against the US Dollar. BCH/USD may resume its downside once the current correction is over.
Bitcoin Cash Price Resistance
This past week, we saw nasty declines in bitcoin cash price below the $550 support against the US Dollar. The BCH/USD pair recently broke the $500 support area and traded as low as $461. Later, there was an upside correction initiated and the price moved above the $475 level. There was also a break above the 23.6% Fib retracement level of the last decline from the $526 high to $461 low.
However, the price is facing a strong resistance near the $490-500 zone. There is also a connecting bearish trend line formed with resistance near $488 on the hourly chart of the BCH/USD pair. Above the trend line, the 50% Fib retracement level of the last decline from the $526 high to $461 low is near $494. Moreover, the 100 hourly simple moving average is also positioned near the $500 level. Therefore, it seems like there is a strong resistance zone formed near the $490 and $500 levels.
Looking at the chart, BCH price may correct a few points towards $500 in the short term. However, upsides are likely to be limited and the price may dive back towards the $460 level in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently just near the 50 level.
Major Support Level – $460
Major Resistance Level – $500
