Key Points
- Bitcoin cash price broke to the upside, but it declined back below $460 against the US Dollar.
- There is an ascending channel forming with support at $440 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may continue to consolidate and slowly move higher above $450 in the near term.
Bitcoin cash price retreated from the $480 resistance against the US Dollar. BCH/USD is currently consolidating above $440 with a few positive signs.
Bitcoin Cash Price Analysis
Yesterday, there was a sharp upside move and reversal in bitcoin price, which helped bitcoin cash price to move above $450 against the US Dollar. However, the BCH/USD pair failed near the $480 resistance and retreated sharply from highs. It broke the $475 and $460 support levels. Moreover, there was a break below the 50% Fib retracement level of the last wave from the $425 low to $483 high.
The decline was such that the price retested the $440 support area. There was almost a full retrace with a test of the $436 swing low and the 100 hourly simple moving average. Additionally, the 76.4% Fib retracement level of the last wave from the $425 low to $483 high was tested. Later, the price started an upside move towards the $445 level and settled above the $440 support. At the outset, there is an ascending channel forming with support at $440 on the hourly chart of the BCH/USD pair. The price needs to clear the $450 and $455 resistance levels to climb higher again.
Looking at the chart, BCH price seems to be consolidating with positive moves above $440. On the downside, the $440 and $435 levels are crucial supports for the current wave. Below these, the price may retest the $425 low.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is placed above the 50 level.
Major Support Level – $440
Major Resistance Level – $455