Key Points
- Bitcoin cash price is trading above the $1600 and $1500 support levels against the US Dollar.
- There is a major bullish trend line forming with support at $1630 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is currently struggling to break the $1750 resistance, but remains well supported on the downside.
Bitcoin cash price is positioned nicely above $1600 against the US Dollar. BCH/USD might soon eye a break above $1750 for further gains.
Bitcoin Cash Price Support
The past few days were mostly bullish for bitcoin cash price as it traded above the $1500 and $1600 resistances against the US Dollar. The price traded above the $1700 level, but struggled to break the $1720 and $1750 resistance levels. There were 2-3 attempts to break the $1750 resistance, but buyers failed. At the moment, the price is correcting lower and it already moved once below the 23.6% Fib retracement level of the last wave from the $1150 low to $1748 high.
However, downsides were limited by the $1520-1500 support zone. Moreover, the 38.2% Fib retracement level of the last wave from the $1150 low to $1748 high also protected declines. On the downside, there is a major bullish trend line forming with support at $1630 on the hourly chart of BCH/USD. The trend line support is likely to prevent declines below $1600 in the near term. There can be a couple of swing moves toward $1620-1600, but at the end the pair would move higher.
A break above the $1750 resistance would open the doors for more gains. The next major hurdle on the upside could be $1800 and $1840. Above $1840, the price might target $2000.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well above the 60 level.
Major Support Level – $1600
Major Resistance Level – $1750
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.