Key Points
- Bitcoin cash price is consolidating gains above the $470 support level against the US Dollar.
- There is a contracting triangle forming with support at $485 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may continue to consolidate before buyers make an attempt to surpass $500 and $510.
Bitcoin cash price is placed above the $450 and $460 supports against the US Dollar. BCH/USD could accelerate gains in the near term above the $500 level.
Bitcoin Cash Price Analysis
This past week, there was a decent rise from the $430 swing low in bitcoin cash price against the US Dollar. The BCH/USD pair started an upward move and traded above the $450, $460 and $470 resistance levels. There was also a close above the $460 support and the 100 hourly simple moving average. The price traded as high as $510 and later started trading in a range.
It corrected lower and declined below the $480 level. There was also a break below the 50% Fib retracement level of the last upward move from the $448 low to $510 high. However, downsides were contained by the $470 support area. Moreover, the 61.8% Fib retracement level of the last upward move from the $448 low to $510 high also acted as a support. At the moment, it seems like there is a contracting triangle forming with support at $485 on the hourly chart of the BCH/USD pair. If the price declines below the triangle, it could test the $460 and $450 support levels.
Looking at the chart, BCH price may make an attempt to surpass the channel resistance at $505. Above this, the price may perhaps rise towards the $525 level in the near term.
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 for BCH/USD is just above the 50 level.
Major Support Level – $460
Major Resistance Level – $500
