Bitcoin Cash Price Technical Analysis – BCH/USD To Break Higher

Key Points

• Bitcoin cash price managed to gain bids near $520 against the US Dollar and currently attempting a recovery.
• This week’s long followed descending channel pattern with current resistance near $580 on the hourly chart of BCH/USD (data feed from Kraken) is about to break.
• The price may soon break the $580-600 resistance and trade higher in the near term.

Bitcoin cash price is forming a decent support near $520 against the US Dollar. BCH/USD is attempting a break and might soon trade above $600.

Bitcoin Cash Price Resistance

We saw a continuous decline in Bitcoin cash price this week from the $700 swing high against the US Dollar. The price recently reached the $520-500 support area where buyers emerged. They protected declines and it seems like the price is forming support near $520. The price has already recovered well above the 38.2% Fib retracement level of the last decline from the $662.50 high to $520.36 low. It is a positive sign and might take the price above $600.

At the moment, the price is struggling near a major hurdle at $580-600. Moreover, this week’s long followed descending channel pattern with current resistance near $580 on the hourly chart of BCH/USD is also acting as a hurdle. Lastly, the 50% Fib retracement level of the last decline from the $662.50 high to $520.36 low is also near $590. Therefore, a break above the $580-600 levels with a close is needed for more gains.

Once there is a close above $600, the price could attempt a move towards the $660 level. On the downside, the $540 and $520 levels are decent supports.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is now well above the 50 level with positive signs.

Major Support Level – $540

Major Resistance Level – $600

 

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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