Key Points
- Bitcoin cash price declined sharply, but it found support near the $420 level against the US Dollar.
- There was a break above a major bearish trend line with resistance at $435 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair may well continue to move higher once there is a break above the $450 resistance.
Bitcoin cash price is placed well above the $420 support against the US Dollar. BCH/USD could accelerate above the $450 and $460 resistances in the near term.
Bitcoin Cash Price Analysis
This past week, there were losses noted below the $450 support level in bitcoin cash price against the US Dollar. The BCH/USD pair declined and even broke the $440 support. It traded close to the $420 support area where buyers emerged. There was a strong buying interest near the $420 level and later the price started a decent recovery. It moved above the 50% Fib retracement level of the recent slide from the $458 high to $423 low.
More importantly, there was a break above a major bearish trend line with resistance at $435 on the 4-hours chart of the BCH/USD pair. The pair climbed above the $440 resistance as well, but it is still trading well below the 100 simple moving average (4-hours). The current wave is facing hurdles near the $450 resistance (the previous support). Moreover, the 76.4% Fib retracement level of the recent slide from the $458 high to $423 low is also acting as a strong resistance.
Looking at the chart, BCH price must break the $450 resistance level to enter a bullish zone. The next major hurdles for buyers are near the $460 and $475 levels. The main support on the downside is at $420.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slightly in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
Major Support Level – $420
Major Resistance Level – $450