- Bitcoin cash price after consolidating just below the $300 level gained heavy bids against the US Dollar.
- There was a break above a major bearish trend line at $300 on the hourly chart of BCH/USD (data feed from Kraken).
- The price rocketed higher and broke many hurdles on the way up towards $500.
Bitcoin cash price surged higher by more than $200 against the US Dollar. BCH/USD is currently trading below $500 and remains buy on dips.
Bitcoin Cash Price Break Shackles
During the past few days, we saw a consolidation below the $300 level in Bitcoin cash price against the US Dollar. The price after consolidating for a long time gained heavy bids and made a solid upside move above $300. During the upside move, it broke many hurdles like $350 and $400. Yesterday’s highlighted major descending channel pattern with resistance at $301 on the hourly chart of BCH/USD was breached.
The most important break was above a crucial bearish trend line at $300 on the same chart. It cleared the bearish bias and set the path for more gains above $400. The price made a solid uptrend and traded higher by more than $200. A high was formed at $519.31 where sellers appeared. It seems like there is a slight correction possible towards $460-450 in the near term.
An initial support is around the 23.6% Fib retracement level of the last wave from the $290 low to $519 high. Any further downside would be limited by $440, which is also around the 38.2% Fib retracement level of the last wave from the $290 low to $519 high. Buying dips in the short term towards $460-440 might be considered.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD moved sharply in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is placed well in the overbought levels.
Major Support Level – $440
Major Resistance Level – $520
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.