Key Points
- Bitcoin cash price recovered and managed to move above the $1,250 resistance against the US Dollar.
- There is a key bullish trend line forming with support at $1,255 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may continue to rise, but it could correct lower to test the $1,240-50 support area.
Bitcoin cash price is showing a few positive signs above $1,250 against the US Dollar. BCH/USD is currently correcting lower and it remains supported above $1,240.
Bitcoin Cash Price Support
After forming a base around the $1,150 level, bitcoin cash price started an upside recovery against the US Dollar. The price traded higher and it managed to move above the $1,200 and $1,240 resistance levels. The upside move was very positive since the price closed above the $1,250 resistance and the 100 hourly simple moving average. It even spiked above the $1,300 level before starting a downside correction.
A high was formed at $1,315 and the price corrected below the 23.6% Fib retracement level of the last wave from the $1,165 low to $1,315 high. However, there are a few key supports on the downside near $1,250. At the moment, a key bullish trend line with support at $1,255 on the hourly chart of the BCH/USD pair is protected losses. Moreover, the 50% Fib retracement level of the last wave from the $1,165 low to $1,315 high is placed near the $1,240 level to prevent declines.
Looking at the chart, the price is likely to break the trend line support at $1,255. However, there are high chances that the price could find a strong support near $1,240. On the upside, a close above $1,300 will most likely accelerate gains.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently holding well above the 50 level.
Major Support Level – $1,240
Major Resistance Level – $1,300
