Key Points
- Bitcoin cash price surged higher this past week and broke $600 against the US Dollar.
- There is a major bullish trend line forming with support at $600 on the 4-hours chart of BCH/USD (data feed from Kraken).
- The pair must remain above the $600 handle if it has to stay in the bullish zone.
Bitcoin cash price rocketed higher towards $700 against the US Dollar. BCH/USD is currently correcting and holding an important support at $600.
Bitcoin Cash Price Support
It was a bullish week for Bitcoin cash price as it climbed above the $500 and $600 levels against the US Dollar. The price even made a nice upside move above $650 to test the $700 handle. However, it failed at $684 and started a downside correction. There was a downside reaction towards below the 23.6% Fib retracement level of the last wave from the $430 low to $684 high.
However, the downside move found support near $585. The 38.2% Fib retracement level of the last wave from the $430 low to $684 high also protected losses. On the downside, there is a major bullish trend line forming with support at $600 on the 4-hours chart of BCH/USD. As long as the pair remains above the trend line support and $600, it is likely to continue moving higher. On the upside, the $650 and $685 levels are resistance levels. However, the most important resistance is near $700.
On the other hand, a break of $600 could ignite a wave towards $550 and the 50% Fib retracement level of the last wave from the $430 low to $684 high. The overall trend is bullish as long as the price is above $600.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slightly in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is moving lower towards the 60 level.
Major Support Level – $600
Major Resistance Level – $685
Charts courtesy – Trading View, Kraken
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