Key Points
- Bitcoin cash price dipped sharply and retested the 0 support area against the US Dollar.
- There was a break above a connecting bearish trend line with resistance at 5 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair could correct lower towards 8 or 5 before it can recover further in the near term.
Bitcoin cash price dipped and then recovery quickly above 0 against the US Dollar. BCH/USD could trade towards the 0 or 0 resistance in the short term.
Bitcoin Cash Price Analysis
Yesterday, bitcoin cash price failed to settle above the 0-422 zone against the US Dollar. The BCH/USD pair dipped sharply and retested the 8-410 support area where buyers emerged. The price found a strong buying interest near 0, resulting in a sharp upward move. Buyers pushed the price back above the 5 and 0 resistance levels.
Moreover, there was a break above a connecting bearish trend line with resistance at 5 on the hourly chart of the BCH/USD pair. The pair tested the 0 resistance zone and the 100 hourly simple moving average. Buyers struggled to push the price above the 0 level, resulting in a short term correction. The pair moved below the 23.6% Fib retracement level of the recent wave from the 7 low to 9 high. It seems like there could be more declines, but buyers are likely to protect the 8 and 5 support levels. Besides, the 50% Fib retracement level of the recent wave from the 7 low to 9 high is also near 8.
Looking at the chart, BCH price is forming a decent support near the 0 level. As long as the price is above 7, it could make another attempt to surpass 0.
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 well above the 50 level.
Major Support Level – 5
Major Resistance Level – 0
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