Key Points
- Bitcoin cash price surged above the $2000 level against the US Dollar before starting a sharp downside correction.
- There is a monster bullish trend line forming with current support at $1300 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is now consolidating in a range above the $1300 level and with resistance at $1750.
Bitcoin cash price rocketed as high as $2600 against the US Dollar. BCH/USD is now correcting lower and remains well below $2000.
Bitcoin Cash Price Trend
There was a sharp upside move in Bitcoin cash price above the $2000 level against the US Dollar. The price rocketed above $2500 and traded to a new all-time high around $2600. Later, there was a sharp downside move below $2000 and the price tumbled by more than $1000. The price traded towards the $1200 support area where buyers protected downside and later BCH started trading in a range.
It moved above the 23.6% Fib retracement level of the last drop from the $2600 high to $1200 low. However, the upside move was capped by the $1800 level. Moreover, the 38.2% Fib retracement level of the last drop from the $2600 high to $1200 low acted as a resistance. On the downside, it seems like there is a monster bullish trend line forming with current support at $1300 on the hourly chart of BCH/USD.
The highlighted trend line support is holding losses above the $1300 level. On the upside, there is a connecting bearish trend line forming with resistance at $1800. As long as the price is above $1200, it can make another upside attempt toward $1800 or higher.
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 for BCH/USD is currently near the 50 level.
Major Support Level – $1300
Major Resistance Level – $1800
Charts courtesy – Trading View, Kraken
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.