Key Points
- Bitcoin cash price surged higher and managed to break the $500 resistance against the US Dollar.
- There are two bullish trend lines formed with support near $490 and $470 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might correct a few points from the current levels, but remains supported above $450.
Bitcoin cash price surged towards the $550 level against the US Dollar. BCH/USD is currently correcting lower, but remains well bids above $460-450.
Bitcoin Cash Price Upside Break
There was a nice upside move in Bitcoin cash price above the $450 level against the US Dollar. The price managed to gain traction and was even able to move above the $500 handle. Yesterday’s idea of buying dips towards the $450 level worked. The upside move was positive, as there were decent gains taking the price towards the $550 level. The price tested the $550 resistance, which acted as a barrier.
At present, the price is correcting lower and heading towards the 23.6% Fib retracement level of the last wave from the $300 low to $549 high. There are two bullish trend lines formed with support near $490 and $470 on the hourly chart of BCH/USD. The first trend line is near the 23.6% fib level at $490. The second trend line is near the 38.2% Fib retracement level of the last wave from the $300 low to $549 high at $455.
As long as the price is above the $450 support zone, it remains supported. Once again, buying dips towards $490-470 levels can be considered with a stop below $450. On the upside, the $550 level remains a crucial resistance.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly reducing its bullish slope.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently heading south towards the 50 level.
Major Support Level – $470
Major Resistance Level – $550
Charts courtesy – Trading View, Kraken
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