Key Points
- Bitcoin cash price has recovered from the $302 low against the US Dollar and currently testing an important resistance.
- There are two crucial bearish trend lines forming with resistance at $450 and $480 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might struggle to move above the $480 resistance area unless buyers gain momentum.
Bitcoin cash price is recovering from the $300 handle against the US Dollar. BCH/USD has to settle above $480-500 for further gains in the near term.
Bitcoin Cash Price Resistance
This past week we saw a major decline in Bitcoin cash price below $500 against the US Dollar. The price was under a lot of pressure and it broke the $400 and $350 support levels. It traded as low as $302 from where it started recovering. It moved above the 23.6% Fib retracement level of the last drop from the $538 high to $302 low. However, the upside move is now facing many hurdles near $450-480.
One of the positive signs was a break of the 50% Fib retracement level of the last drop from the $538 high to $302 low. However, the price failed to move past the $480 level and the 76.4% Fib level of the stated wave. There are also two crucial bearish trend lines forming with resistance at $450 and $480 on the hourly chart of BCH/USD. These trend lines are acting as an important barrier and preventing gains above $480.
Unless buyers gain momentum and takes the price above $480, BCH/USD might struggle in the near term. On the downside, an initial support is at $420, followed by the $380 level.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is in the bullish zone, but with no momentum.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently above the 50 level.
Major Support Level – $420
Major Resistance Level – $480
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.