Key Points
- Bitcoin cash price is finding bids above the $300 support area against the US Dollar.
- There is a contracting triangle pattern forming with resistance at $324 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is likely to move inside a range above $300 before making the next move.
Bitcoin cash price is stable above $300 against the US Dollar. BCH/USD might trade in a range for some time before attempting an upside break.
Bitcoin Cash Price Resistance
This past week was mostly bearish for Bitcoin cash price as it moved below the $350 support against the US Dollar. There were a few attempts to break the $300 support as well. However, buyers were able to prevent a close below the $300 level and the price started trading in a range. At the moment, it seems like the price is consolidating above $300 and preparing for the next move.
There can be more ranging moves since there is a contracting triangle pattern forming with resistance at $324 on the hourly chart of BCH/USD. The triangle resistance is near the 50% Fib retracement level of the last drop from the $40 high to $300 low. A break and close above the $324-330 levels is required for buyers to gain control. Once there is a break above $325, the 76.4% Fib retracement level of the last drop from the $40 high to $300 low near $340 might be tested.
On the downside, the triangle support sits near $305. The most important support is near $300. Overall, there is a range forming with support near $300 and resistance at $325. A break of either $325 or $300 might ignite the next move.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just above the 50 level.
Major Support Level – $300
Major Resistance Level – $325
Charts courtesy – Trading View, Kraken
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