Key Points
- Bitcoin cash price is forming a decent support near the 0-432 zone against the US Dollar.
- There was a break above a key bearish trend line with resistance at 4 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may slowly recover towards the 0 and 2 levels in the near term.
Bitcoin cash price is consolidating above 0 against the US Dollar. BCH/USD could recover if buyers gain momentum above the 8 level.
Bitcoin Cash Price Analysis
There were a couple of tests of the 0-432 support by bitcoin cash price against the US Dollar. The BCH/USD pair remained supported above 0 and it recently formed a base for an upward move. The price started a short term recovery and moved above the 5 level. There was a break above the 23.6% Fib retracement level of the last decline from the 1 high to 2 low.
Moreover, there was a break above a key bearish trend line with resistance at 4 on the hourly chart of the BCH/USD pair. The pair spiked towards the 0 level and the 100 hourly simple moving average where sellers appeared. Besides, the price faced sellers near the 50% Fib retracement level of the last decline from the 1 high to 2 low. The price is currently correcting lower towards the 5 and 2 supports. As long as the price is above the 0 level, it could slowly move higher in the near term.
Looking at the chart, BCH price is forming a decent support above 0. However, buyers need to gain momentum above the 8 and 0 resistances to take the price higher. The next major hurdle for a recovery awaits near the 0 zone.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is placed well above the 50 level.
Major Support Level – 4
Major Resistance Level – 0
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