Key Points
- Bitcoin cash price is recovering after finding buyers around the 5 level against the US Dollar.
- There was a break above a short-term contracting triangle with resistance at 0 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is trading with positive signs, but it is approaching key resistances near 5 and 0.
Bitcoin cash price started a short-term correction above 0 against the US Dollar. BCH/USD could trade higher, but it is likely to face sellers near 0.
Bitcoin Cash Price Resistance
Recently, we saw a nasty decline in bitcoin cash price below the 0 support level against the US Dollar. The BCH/USD pair traded towards the 0 level and formed a low near 2. Later, a short-term recovery wave was initiated and the price moved above the 0 and 0 resistance levels. It also broke the 23.6% Fib retracement level of the last decline from the 3 high to 2 low.
Moreover, there was a break above a short-term contracting triangle with resistance at 0 on the hourly chart of the BCH/USD pair. The price is currently trading above the 0 resistance, but it is approaching a few important resistances near 0. An initial resistance is the 50% Fib retracement level of the last decline from the 3 high to 2 low at 2. Above this, the last support at 0 is likely to act as a resistance. Finally, the 100 hourly simple moving average is positioned near the 0 level to prevent gains. Therefore, it won’t be easy for BCH buyers to clear the 0-550 resistance zone.
Looking at the chart, BCH price is showing a few positive signs above 0. However, there are many hurdles on the upside near 0 to stop the current correction.
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 well above the 50 level.
Major Support Level – 0
Major Resistance Level – 0
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