Key Points
- Bitcoin cash price found support near $950 and started an upside move against the US Dollar.
- This week’s crucial bearish trend line with resistance at $1,040 was breached on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is now trading above the $1,020 resistance and it may correct further in the near term.
Bitcoin cash price is recovering nicely from $950 against the US Dollar. BCH/USD could recover further as long as the price is above $1,020.
Bitcoin Cash Price Support
After a major slide, bitcoin cash price found support near the $950 level against the US Dollar. The price traded as low as $947.3 where buyers appeared and prevented declines. A fresh upward correction was started and the price moved above the $980 and $1,000 resistance levels. It even succeeded in moving above the 23.6% Fib retracement level of the last decline from the $1,190 swing high to $947 low.
More importantly, this week’s crucial bearish trend line with resistance at $1,040 was breached on the hourly chart of the BCH/USD pair. At the moment, the price is trading just above the $1,050 level and is showing positive signs. It has to settle above the 50% Fib retracement level of the last decline from the $1,190 swing high to $947 low to gain momentum. On the upside, there is a strong resistance zone near $1,080 and $1,100. A break above the $1.100 resistance level could open the doors for more gains in the near term.
Looking at the chart, the price is slowly recovering and it could move towards $1,100 and $1,120. However, any further upsides above $1,100 and the 100 hourly simple moving average won’t be easy.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now back above the 50 level with positive signs.
Major Support Level – $1,000
Major Resistance Level – $1,100