Key Points
- Bitcoin cash price declined recently, but it found support near $740 against the US Dollar.
- There is a new connecting bullish trend line forming with support at $750 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is placed nicely above $740 and the 100 hourly simple moving average, which is a positive sign.
Bitcoin cash price is holding the $740 support nicely against the US Dollar. BCH/USD may continue to move higher and it could even target a fresh high above $800.
Bitcoin Cash Price Trend
After trading further higher, bitcoin cash price found sellers near $800 against the US Dollar. The price started a downside correction and traded below the $780 and $760 support levels. There was also a break below the 50% Fib retracement level of the last leg from the $721 low to $800 high. However, the downside move found support near a crucial level at $740 and the 100 hourly simple moving average.
BCH buyers protected further declines, resulting in an upside move above the $750 level. It has moved above the 23.6% Fib retracement level of the last decline from the $800 high to $742 low. However, the upside move is facing sellers near the $770 level. Moreover, the 50% Fib retracement level of the last decline from the $800 high to $742 low is also near $770. Therefore, a break above the $770 level is needed for further gains. Above $770, the price could retest the last swing high at $800. And, if buyers remain in control, the price may even break the $800 level for a new high.
Looking at the chart above, there is a new connecting bullish trend line forming with support at $750. As long as the price is above $740-750, it remains supported.
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 near the 50 level.
Major Support Level – $740
Major Resistance Level – $770