BUY BITCOIN
Key Points
- Bitcoin cash price after trading towards the $400 level started consolidating against the US Dollar.
- There is a short-term contracting triangle pattern forming with resistance near $425 on the hourly chart of BCH/USD (data feed from Kraken).
- A break and close above $425-430 could take the price towards the $460 level.
Bitcoin cash price is consolidating losses against the US Dollar. BCH/USD needs to gather pace to trade higher towards the $460 level.
Bitcoin Cash Price Resistance
During the past few days, Bitcoin cash price struggled a lot and moved below the $450 level against the US Dollar. The price traded as low as $399 where it found bids. Later, the price started consolidating losses and slowly moved above the $425 level. However, the price failed to hold gains above the 23.6% Fib retracement level of the last decline from the $550 high to $399 low.
It once again moved down, and currently there is a short-term contracting triangle pattern forming with resistance near $425 on the hourly chart of BCH/USD. The pair needs to gather pace in order to break the $425-430 resistance. Once there is a proper close above $430, the pair could trade towards $455-460. The 38.2% Fib retracement level of the last decline from the $550 high to $399 low at $456 is the next resistance. On the downside, the triangle support is at $415. A break of $415 would call for a retest of $400.
Overall, the price is struggling to recover above $430. If buyers fail to gather momentum, there could be a nasty decline below $400 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is mostly flat with no major bias (bearish or bullish).
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well below the 50 level.
Major Support Level – $400
Major Resistance Level – $450
Charts courtesy – Trading View, Kraken
