Key Points
- Bitcoin cash price stayed above the $1,240 support level and recovered against the US Dollar.
- There was a break above a connecting bearish trend line with resistance at $1,320 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is now back above $1,350 and the 100 hourly simple moving average, which is a positive sign.
Bitcoin cash price is showing positive signs above $1,350 against the US Dollar. BCH/USD may resume its uptrend as long as it is above $1,280.
Bitcoin Cash Price Support
After a major decline, bitcoin cash price found support near the $1,240 level against the US Dollar. A low was formed at $1,232 before the price started consolidating losses. Later, a fresh upside wave started and the price moved above $1,300. It also succeeded in settling above the 23.6% Fib retracement level of the last decline from the $1,575 swing high to $1,232 low.
More importantly, there was a break above a connecting bearish trend line with resistance at $1,320 on the hourly chart of the BCH/USD pair. It opened the doors for more gains and the price moved above $1,350 and the 100 hourly simple moving average. At the moment, the pair is trading near the 50% Fib retracement level of the last decline from the $1,575 swing high to $1,232 low. It seems like the price is forming a base for another upside push above $1,450. The current technical structure is positive above $1,350 and the 100 hourly SMA, suggesting an upward move.
Looking at the chart, if the price moves down from the current levels, the $1,350 support may prevent declines. However, the most important support on the downside is near a bullish trend line at $1,280.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is now back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently near the 60 level.
Major Support Level – $1,350
Major Resistance Level – $1,440