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Key Points
- Bitcoin cash price declined further and traded below the $300 level against the US Dollar.
- Yesterday’s highlighted key bearish trend line with current resistance is intact near $340 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is currently correcting sharply, but likely to face selling interest near $340-350.
Bitcoin cash price is recovering from $290 against the US Dollar. BCH/USD might continue to move higher, but the $350 resistance holds a lot of importance.
Bitcoin Cash Price Resistance
Yesterday, I mentioned that there is a chance of Bitcoin cash price testing the $300 level against the US Dollar. The price did trade lower, tested the $300 support and even surpassed it. A low was formed near $291.1 from where the price is currently correcting higher. It has moved sharply higher and already above the 50% Fib retracement level of the last decline from the $362 high to $291 low.
However, there is a major resistance waiting on the upside near $350. The mentioned $350 level was a support earlier and now it could act as a major resistance. It is also near the 76.4% Fib retracement level of the last decline from the $362 high to $291 low. Moreover, yesterday’s highlighted key bearish trend line with current resistance is intact near $340 on the hourly chart of BCH/USD. Therefore, if the price continues to move higher, it is likely to face selling interest near $340-350.
Having said that, the price is recovering well from $300, which is a positive sign. There are chances of a consolidation above $300 for some time before the price makes the next move higher.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has moved sharply into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well above the 50 level.
Major Support Level – $300
Major Resistance Level – $350
Charts courtesy – Trading View, Kraken
