Key Points
- Bitcoin cash price bounced back sharply from the 5 support area against the US Dollar.
- Yesterday’s highlighted key bearish trend line with resistance at 0 was breached on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently trading just below the 0-910 resistance, and it may soon break it.
Bitcoin cash price is showing positive signs above 0 against the US Dollar. BCH/USD is likely to continue higher above the 0-910 resistance.
Bitcoin Cash Price Trend
There was a test of an important support at 5 by bitcoin cash price recently against the US Dollar. The price found a strong buying interest and started an upside move above the 0 level. There was a break above the 50% Fib retracement level of the last decline from the 8 high to 5 low. It opened the doors for more gains and the price jumped further above 0.
More importantly, yesterday’s highlighted key bearish trend line with resistance at 0 was breached on the hourly chart of the BCH/USD pair. The pair also traded above the 0 level and it almost tested the 0 level. A high was formed at 8 before the price started consolidating gains. An initial support is around the 23.6% Fib retracement level of the last wave from the 6 low to 8 high. There may perhaps be more downsides in the near term, but supports such as 0 and 0 are likely to prevent losses.
Looking at the chart, the pair is placed nicely above the 0 level. Therefore, there are high chances of an upside break above the 0 and 8 resistance levels. The next hurdle above 8 is around the 0 pivot level.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has moved back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now placed nicely in the overbought zone.
Major Support Level – 0
Major Resistance Level – 8
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