Key Points
- Bitcoin cash price started a downside correction after trading toward $2800 against the US Dollar.
- There is a key bullish trend line forming with support at $2450 on the hourly chart of BCH/USD (data feed from Kraken).
- The 100 hourly simple moving average is also around $2450 to act as a support.
Bitcoin cash price is correcting lower towards $2400 against the US Dollar. BCH/USD must stay above $2450-2400 to avoid further declines.
Bitcoin Cash Price Correction
We saw further upsides in bitcoin cash price above the $2700 level against the US Dollar. The price traded close to the $2800 level where it faced sellers. A high was formed at $2782 from where a downside correction was initiated. It moved below the 23.6% Fib retracement level of the last wave from the $2220 low to $2782 high. However, there are many supports on the downside around the $2400 and $2450 levels.
At the moment, the price is trading just below the 50% Fib retracement level of the last wave from the $2220 low to $2782 high. On the downside, there is a key bullish trend line forming with support at $2450 on the hourly chart of BCH/USD. The same trend line support at $2450 coincides with the 100 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last wave from the $2220 low to $2782 high is also around $2430. Therefore, it seems like the $2400-2450 support zone may act as a strong buy zone in the near term.
On the upside, an initial resistance is at $2650. A break above $2650 could open the gates for a move toward $2800 and $3000 in the short term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now below 50 and is moving lower.
Major Support Level – $2450
Major Resistance Level – $2650
Charts courtesy – Trading View, Kraken
