Key Points
- Bitcoin cash price started a downside correction from the $1380 swing high against the US Dollar.
- There is a major bullish trend line forming with support at $1190 on the hourly chart of BCH/USD (data feed from Kraken).
- The price remains supported on the downside near the $1200 and $1190 support levels.
Bitcoin cash price recently corrected lower towards $1100 against the US Dollar. BCH/USD needs to move above $1250 for more gains.
Bitcoin Cash Price Support
There was a nice upside move in bitcoin cash price this past week from $840 to well above $1300 against the US Dollar. The price traded as high as $1380 from where a downside correction was initiated. It moved below the 23.6% Fib retracement level of the last wave from the $840 low to $1380 high. However, the downside move was protected by the $1120 support and the 100 hourly simple moving average.
Moreover, the 38.2% Fib retracement level of the last wave from the $840 low to $1380 high also acted as a support. It seems like there is a major bullish trend line forming with support at $1190 on the hourly chart of BCH/USD. The trend line support near $1200 and the 100 hourly SMA is currently preventing downsides below $1200. On the downside, the next important support is near $1040. However, before $1040, the 50% Fib retracement level of the last wave from the $840 low to $1380 high near $1107 might act as a support.
Therefore, the pair is supported on the downside around $1190 and $1040. Having said that, buyers need to push the price above the $1250 level if they have to resume the uptrend. Moreover, the $1280 level is also a major hurdle in the near term.
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 currently above the 50 level with a few bullish signs.
Major Support Level – $1190
Major Resistance Level – $1250
Charts courtesy – Trading View, Kraken
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