Key Points
- Bitcoin cash price traded lower and tested the $550 support area against the US Dollar.
- There is a major bullish trend line with support at $570 forming on the hourly chart of BCH/USD (data feed from Kraken).
- The price might continue to correct higher and most likely to test the $615 resistance zone.
Bitcoin cash price is currently correcting above $560 against the US Dollar. BCH/USD needs to gain momentum above $600 to gain traction.
Bitcoin Cash Price Resistance
We saw a major decline in Bitcoin cash price this past week below $600 against the US Dollar. The price was under a lot of bearish pressure and even tested the $550 support. The stated $550 support acted as a barrier for sellers and later resulted in the start of a correction. The price already tested the 23.6% Fib retracement level of the last decline from the $721 high to $551 low.
However, a tiny connecting bearish trend line with resistance at $590 protected gains. On the downside, there is a major bullish trend line with support at $570 forming on the hourly chart of BCH/USD. The trend line support at $570 is acting as a crucial hurdle for downsides and might push the pair higher. Above the first bearish trend line lies the 38.2% Fib retracement level of the last decline from the $721 high to $551 low at $616. It is below another bearish trend line at $620 on the same chart.
Overall, it looks like there is a major resistance forming near $600-620. The price has to break $600 and then $620 to gain traction in the near term. On the downside, the $550 level is the most important support.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving higher towards the 50 level.
Major Support Level – $550
Major Resistance Level – $620
Charts courtesy – Trading View, Kraken
