Bitcoin Cash Price Technical Analysis – BCH/USD Back Bullish?

Key Points

• Bitcoin cash price after trading as low as $533 against the US Dollar found support and traded higher.
• Yesterday’s highlighted crucial descending channel pattern with resistance near $625 on the hourly chart of BCH/USD (data feed from Kraken) was broken.
• The price is now following a bullish path and could trade above $720 in the near term.

Bitcoin cash price after a correction towards $550 against the US Dollar found support. BCH/USD is now back in the bullish zone above $640.

Bitcoin Cash Price Trend

There was a sharp downside move in Bitcoin cash price from well above $900 to well below $600 against the US Dollar. The price followed a bearish path and traded as low as $533 where buyers appeared and protected declines. Later, the price was able to gain strong bids and was able to move above $600. It started trading with a positive tone and broke the 23.6% Fib retracement level of the last decline from the $943 high to $533 low.

During the upside, yesterday’s highlighted crucial descending channel pattern with resistance near $625 on the hourly chart of BCH/USD was breached. The pair is now trading above the $650 support and flirting with the 100 hourly simple moving average. The most important resistance on the upside is near the 50% Fib retracement level of the last decline from the $943 high to $533 low.

At the moment, the pair is following an ascending channel with support at $670 on the same chart. Once it breaks $700 and the 100 hourly simple moving average, there can be more gains. The price could even target a move above the $800 level in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently just above the 50 level.

Major Support Level – $650

Major Resistance Level – $740

 

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.

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