Bitcoin Cash Price Weekly Analysis – BCH/USD Breaks Key Resistance

Key Points

• Bitcoin cash price broke a major resistance area at $340 against the US Dollar and surged higher.
• There was a break above a crucial bearish trend line with resistance at $345 on the 4-hours chart of BCH/USD (data feed from Kraken).
• The pair is now back in the bullish zone above the $350 support area.

Bitcoin cash price surged higher and broke a key resistance at $340 against the US Dollar. BCH/USD has now turned buy on dips in the short term.

Bitcoin Cash Price Support

This past week, we saw many attempts by Bitcoin cash price to break the $340-350 resistance against the US Dollar. The price did move higher and manage to break the mentioned $340 and $350 resistance levels. The upside move was very positive and the price even succeeded in clearing the $400 handle. There was also a close above $350, $380 and the 100 simple moving average (4-hour).

Moreover, there was a break above a crucial bearish trend line with resistance at $345 on the 4-hours chart of BCH/USD. All this means that the pair is back in the bullish zone above $350. It traded as high as $425.10 recently and is currently correcting lower. An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the $306 low to $425 high near $395-400. The stated fib level and the $395 support is a key area since it was also a resistance earlier.

Below $395, the most important support is near $365. It is also the 50% Fib retracement level of the last wave from the $306 low to $425 high. Overall, buying dips in the short term toward $380-365 can be considered.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is now back in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently in the overbought levels.

Major Support Level – $365

Major Resistance Level – $425

 

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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