Key Points
- Bitcoin cash price after making a short-term top around $550 started a correction against the US Dollar.
- One of the two bullish trend lines with support near $495 and $470 on the hourly chart of BCH/USD (data feed from Kraken) was broken.
- The price is now approaching the second bullish trend line with current support around $470-465.
Bitcoin cash price is correcting lower against the US Dollar. It seems like BCH/USD is approaching a major support area near $470.
Bitcoin Cash Price Support
Yesterday, we saw how Bitcoin cash price traded towards the $550 level against the US Dollar. The price traded as high as $549 before finding sellers and starting a correction. During the downside move, there was a break below the 23.6% Fib retracement level of the last leg from the $301 low to $549 high. It cleared the path for more declines below $500 in the near term.
The most important break was below one of the two bullish trend lines with support near $495 and $470 on the hourly chart of BCH/USD. The price is now heading towards a key support area near $470. The second bullish trend line is near $470 along with the 38.2% Fib retracement level of the last leg from the $301 low to $549 high. The overall pattern looks corrective as long as the price stays above $470. If there is a break and close below $470, the price could trade further lower.
On the downside, the next support lies around the 50% Fib retracement level of the last leg from the $301 low to $549 high at $426. On the upside, the $500 handle is an initial resistance followed by $525.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is now in the bearish slope.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is approaching towards the oversold levels.
Major Support Level – $470
Major Resistance Level – $525
Charts courtesy – Trading View, Kraken
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