Key Points
- Bitcoin cash price is currently consolidating above the 5 support against the US Dollar.
- There is a key contracting triangle formed with resistance at 0 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to make the next move either above 0 or below 0 in the near term.
Bitcoin cash price is preparing for the next move against the US Dollar. BCH/USD could rally once again if there is a break above the 0 resistance.
Bitcoin Cash Price Analysis
Yesterday, we saw a solid upward move above the 0 resistance in bitcoin cash price against the US Dollar. The BCH/USD pair traded towards the 0 level and formed a high at 9. Later, there was a minor downside correction and the price traded below 0. There was also a break below the 23.6% Fib retracement level of the last upside from the 3 low to 9 high.
On the downside, the 5 level acted as a decent support and prevented further losses. Moreover, there was no break below the 50% Fib retracement level of the last upside from the 3 low to 9 high. The price is currently consolidating above the 5 support. More importantly, there is a key contracting triangle formed with resistance at 0 on the hourly chart of the BCH/USD pair. If the pair breaks the triangle resistance at 0, it will most likely revisit the 9 high. Above the stated high, the price could test the 0 level, which is a major barrier. On the other hand, a downside break below 0 may well push the price towards the 5 support.
Looking at the chart, BCH price is preparing for the next move and it will either break 0 or move below 0 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is above the 50 level.
Major Support Level – 0
Major Resistance Level – 0
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