Key Points
- Bitcoin cash price after trading to a new high above $480 against the US Dollar found sellers.
- There is a major ascending channel forming with support at $452 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is approaching the $450-452 support area and might find strong bids.
Bitcoin cash price is currently correcting lower against the US Dollar. BCH/USD is approaching the $450 support zone where buyers might emerge.
Bitcoin Cash Price Support
There were decent gains in Bitcoin cash price above $460 against the US Dollar. The price managed to break yesterday’s high and traded to a new high above $480. It almost tested the $500 handle with a high at $487.2. Later, a downside move was initiated and the price moved below the 50% Fib retracement level of the last wave from the $445 low $487 high.
However, the price is approaching a major support zone near $450. There is also a key ascending channel forming with support at $452 on the hourly chart of BCH/USD. Sellers managed to push the price below the 61.8% Fib retracement level of the last wave from the $445 low $487 high. Having said that, as long as the price is above the $450 support zone, it remains supported. The channel support near $452 could provide strong bids and it might result in bounce back.
On the upside, an initial resistance is near the $465 level. A break above $465 would take the price back towards the $485 level. On the downside, a break of the $450 support might result in further declines. In the mentioned case, the price could even retest $430.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has moved into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD has just breached the 50 level.
Major Support Level – $450
Major Resistance Level – $485
Charts courtesy – Trading View, Kraken
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