Key Points
- Bitcoin cash price corrected lower and tested the $740 support area against the US Dollar.
- There is a major bullish trend line in place with support at $750 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair must break the $800 and $820 resistance levels to gain bullish momentum in the near term.
Bitcoin cash price is placed in a bullish zone above $740 against the US Dollar. BCH/USD must settle above $820 to accelerate gains towards $880 and $900.
Bitcoin Cash Price Support
This past week, there was a decent upside move above the $850 level in bitcoin cash price against the US Dollar. The BCH/USD pair traded towards the $900 level and a high was formed near $890. Later, the price corrected sharply lower and traded below the $850 support. There was even a break below the $800 level. However, losses were protected by an important support at $740 and the 100 simple moving average (4-hours).
More importantly, a major bullish trend line prevented slides with current support at $750 on the 4-hours chart of the BCH/USD pair. The pair recovered and moved above the 23.6% Fib retracement level of the last decline from the $890 high to $739 low. However, the upside move faced sellers near a key connecting bearish trend line with current resistance near $800. Above this, the next resistance is near $820 and the 50% Fib retracement level of the last decline from the $890 high to $739 low. A proper close above the $820 resistance could push the price back in a bullish zone towards $900.
Looking at the chart, the price remains in an uptrend as long as it is above the $740 support. Below this, it could move back towards $700.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is about to move into the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is near the 50 level.
Major Support Level – $740
Major Resistance Level – $820