Key Points
- Bitcoin cash price corrected lower and tested a major support at $1,240 against the US Dollar.
- There is a major bullish trend line forming with support near $1,320 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair remains in an uptrend and it could soon break the $1,500 resistance for more gains.
Bitcoin cash price is bullish above $1,300 against the US Dollar. BCH/USD may continue to grind higher in the near term towards $1,500 and $1,600.
Bitcoin Cash Price Trend
After a solid rally, bitcoin cash price topped around the $1,576 level against the US Dollar. A downside correction was initiated and the price moved below the $1,500 level. The price also declined below the 23.6% Fib retracement level of the last upside leg from the $1,030 low to $1,576 high. It opened the doors for a larger correction and the price even broke the $1,300 support level.
However, the decline was protected by the $1,240-50 zone. Moreover, the 61.8% Fib retracement level of the last upside leg from the $1,030 low to $1,576 high also acted as a support. The downside move found support around $1,240. A base was formed and the price resumed its uptrend. It is now back above the $1,400 resistance and is trading in a bullish zone. There is also a major bullish trend line forming with support near $1,320 on the 4-hours chart of the BCH/USD pair. The pair remains well supported on the downside around the $1,320-40 levels.
Looking at the chart, it seems like the price may continue to move higher and it could soon break $1,500. A successful break above $1,500 may perhaps clear the path for a new high above $1,575 in the near term.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slowly moving back in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 55 level.
Major Support Level – $1,320
Major Resistance Level – $1,500
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