Key Points
- Bitcoin cash price finally made a nice upside move and traded above $550 against the US Dollar.
- This week’s important descending channel pattern with major resistance near $575 on the hourly chart of BCH/USD (data feed from Kraken) was broken.
- Yesterday’s idea of a possible break worked and the price is now above $580 and in the bullish zone.
Bitcoin cash price made a nice upside move above $580 against the US Dollar. BCH/USD is now back in the bullish zone and could trade above $620.
Bitcoin Cash Price Support
This week we followed a bearish path below $650 in in Bitcoin cash price against the US Dollar. Yesterday’s I mentioned that there is a chance that BCH could finally break the $550-580 resistance to trade higher. It finally made a nice upside move and traded above $580 to register decent gains. The upside move was such that the price climbed above the 50% Fib retracement level of the last decline from the $665 high to $520 low. It opened the doors for more gains and the price traded above $580.
The most important break was above this week’s long followed descending channel pattern with major resistance near $575 on the hourly chart of BCH/USD. The price traded as high as $610.14 and currently consolidating gains. If the current momentum stays, there is a chance of it breaking $610 for a move towards $640.
At the moment, the pair is testing the 23.6% Fib retracement level of the last wave from the $520 low to $610 high. Buying dips in the near term towards $570-550 can be considered with a tight stop.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is in the bullish zone near the 60 level.
Major Support Level – $575
Major Resistance Level – $610