Key Points
- Bitcoin cash price started consolidating losses after trading as low as 5 against the US Dollar.
- There is a short-term ascending channel forming with resistance at 0 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair needs to surpass the 0 and 5 level to correct towards the 0 and 5 resistances.
Bitcoin cash price is holding the 0 support against the US Dollar. BCH/USD may trade above the 5 resistance to test the 5 resistance in the near term.
Bitcoin Cash Price Correction
Yesterday, we saw a sharp downside move in bitcoin cash price from well above the 0 level against the US Dollar. The BCH/USD pair even broke the 0 support and traded below 0 and the 100 hourly simple moving average. It traded as low as 5 and later started an upside correction. It slowly moved above the 0 level and the 5 resistance.
Recently, buyers were able to push the price above the 0 level. Moreover, there was a break above the 23.6% Fib retracement level of the last slide from the 3 swing high to 5 low. However, there are many resistances on the upside near the 0 and 5 levels. There is also a short-term ascending channel forming with resistance at 0 on the hourly chart of the BCH/USD pair. If there is a break above the channel resistance, the price could break the 5 resistance. Above 5, the next major hurdle is near the 0-555 zone. The 50% Fib retracement level of the last slide from the 3 swing high to 5 low is also at 9.
Looking at the chart, BCH price may correct higher in the short term, but upsides are likely to be capped by 5 or 555.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently above the 50 level.
Major Support Level – 0
Major Resistance Level – 0
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