Key Points
- Bitcoin cash price after rocketing above the $900 level against the US Dollar started a correction wave.
- There was a break below a major bullish trend line at $740 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might correct further in the near term towards the $640 support or the 100 hourly simple moving average.
Bitcoin cash price after trading as high as $941 started a correction against the US Dollar. BCH/USD might test $640-650 before resuming trend.
Bitcoin Cash Price Support
Recently, we saw a nasty run in Bitcoin cash price as it moved above the $900 level against the US Dollar. The price traded as high as $941 and then started correcting lower. It moved down and traded below the 23.6% Fib retracement level of the last wave from the $590 low to $941 high. It opened the doors for an extended correction. During the downside move, the price even settled below the $800 support and traded towards $680.
There was also a break below a major bullish trend line at $740 on the hourly chart of BCH/USD. The price even broke the 61.8% Fib retracement level of the last wave from the $590 low to $941 high. It means there is a chance that the price could retest the last swing low of $640. Below $640, the 100 hourly simple moving average is positioned to act as a strong support.
On the upside, there is a connecting bearish trend line forming with resistance at $760. A break above it might call for trend resumption towards $800 or higher. Overall, buying dips towards the $640 level or the 100 hourly simple moving average might be considered with a stop below $600.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently below the 50 level, but moving higher.
Major Support Level – $640
Major Resistance Level – $760
Charts courtesy – Trading View, Kraken
