BUY BITCOIN
Key Points
- Bitcoin cash price started a decent upside move and traded above $720 against the US Dollar.
- There was a break above a crucial bearish trend line with resistance at $720 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is now back in an uptrend and it may continue to trade higher towards the $850 level.
Bitcoin cash price is trading nicely in a bullish zone against the US Dollar. BCH/USD is likely to gain traction for a run towards the $850-900 zone.
Bitcoin Cash Price Trend
There was a decent support base formed near the $600 level in bitcoin cash price against the US Dollar. The price started an upside wave this past week, and moved above a few hurdles such as $650 and $700. The upside move was very strong as the price was able to close above the $720 resistance level. Moreover, there was a break above the 23.6% Fib retracement level of the last decline from the $1,079 high to $600 low.
More importantly, there was a break above a crucial bearish trend line with resistance at $720 on the 4-hours chart of the BCH/USD pair. The pair is now trading well above the $700 level and the 100 simple moving average (4-hours). The upside drift stopped near the 38.2% Fib retracement level of the last decline from the $1,079 high to $600 low. However, the downside is limited by the $700-720 support area. It seems like the price is now well supported above the $700 level for more gains.
Looking at the chart above, a break above the $775 level could open the doors for more gains. The next major barrier for buyers above $775 is near $850.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slightly in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Level – $700
Major Resistance Level – $775
