Bitcoin Cash Price Technical Analysis – BCH/USD Buy Dips

Key Points

• Bitcoin cash price finally made a nice upside move above the $600 level against the US Dollar.
• Yesterday’s highlighted a bearish trend line with resistance at $575 on the hourly chart of BCH/USD (data feed from Kraken) was cleared.
• The price traded as high as $672 before facing offers and then starting a downside correction.

Bitcoin cash price is back above $600 against the US Dollar. BCH/USD is now in the bullish zone and remains buy on dips near $600-580.

Bitcoin Cash Price Trend

Yesterday, we discussed the chances of Bitcoin cash price testing the $580 level against the US Dollar. The price not only tested the $580 level, but gained enough strength to break the $600 level. There was even a break above the 50% Fib retracement level of the drop from the $676 high to $500 low. The upside move was sharp, and as a result, there was a break above the $640 resistance as well.

The recent price action is positive since BCH almost tested the last swing high of $675-680. There was also a break above yesterdays highlighted a bearish trend line with resistance at $575 on the hourly chart of BCH/USD. A high was formed at $672 from where the price started a short-term correction. The price is currently trading near the 23.6% Fib retracement level of the last wave from the $500 low to $672 high.

On the downside, there is a bullish trend line positioned at $600 on the same chart. Moreover, the 38.2% Fib retracement level of the last wave from the $500 low to $672 high is also near $606. Overall, the $600 level might now act as a strong support and buy zone.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slowly moving into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is heading lower towards the 50 level.

Major Support Level – $600

Major Resistance Level – $670

 

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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