Key Points
- Bitcoin cash price managed to gain bids near $520 against the US Dollar and currently attempting a recovery.
- This week’s long followed descending channel pattern with current resistance near $580 on the hourly chart of BCH/USD (data feed from Kraken) is about to break.
- The price may soon break the $580-600 resistance and trade higher in the near term.
Bitcoin cash price is forming a decent support near $520 against the US Dollar. BCH/USD is attempting a break and might soon trade above $600.
Bitcoin Cash Price Resistance
We saw a continuous decline in Bitcoin cash price this week from the $700 swing high against the US Dollar. The price recently reached the $520-500 support area where buyers emerged. They protected declines and it seems like the price is forming support near $520. The price has already recovered well above the 38.2% Fib retracement level of the last decline from the $662.50 high to $520.36 low. It is a positive sign and might take the price above $600.
At the moment, the price is struggling near a major hurdle at $580-600. Moreover, this week’s long followed descending channel pattern with current resistance near $580 on the hourly chart of BCH/USD is also acting as a hurdle. Lastly, the 50% Fib retracement level of the last decline from the $662.50 high to $520.36 low is also near $590. Therefore, a break above the $580-600 levels with a close is needed for more gains.
Once there is a close above $600, the price could attempt a move towards the $660 level. On the downside, the $540 and $520 levels are decent supports.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is now well above the 50 level with positive signs.
Major Support Level – $540
Major Resistance Level – $600