Bitcoin Cash price is holding the key 0 support against the US Dollar. BCH seems to be aiming for a fresh increase unless there is a move below 0.
- Bitcoin cash price is showing positive signs above the 0 level against the US Dollar.
- The price is trading above 0 and the 100 simple moving average (4 hours).
- There was a break below a key bullish trend line with support near 8 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
- The pair could start a fresh increase unless there is a move below 0.
Bitcoin Cash Price Holds Support
In the past few days, Bitcoin Cash price saw a steady decline from the 5 resistance zone. BCH declined below the 0 support to enter a short-term bearish zone, like Bitcoin and Ethereum.
The price declined below the 50% Fib retracement level of the upward move from the 3 swing low to the 5 high. Besides, there was a break below a key bullish trend line with support near 8 on the 4-hour chart of the BCH/USD pair.
However, the bulls were active above the 0 support. The price found support near the 61.8% Fib retracement level of the upward move from the 3 swing low to the 5 high.
Bitcoin Cash is now trading above 0 and the 100 simple moving average (4 hours). Immediate resistance is near the 6 level. The next major resistance is near 4. Any further gains could lead the price toward the 0 resistance zone.
Source: BCH/USD on TradingView.com
The next major hurdle is near the 2 level, above which BCH might start a decent increase toward the 0 level or 8 in the coming days.
Downside Break in BCH?
If Bitcoin Cash price fails to clear the 4 resistance, it could start a fresh decline. Initial support on the downside is near the 5 level.
The next major support is near the 0 level, where the bulls are likely to appear. If the price fails to stay above the 0 support, the price could test the 2 support. Any further losses could lead the price toward the 0 zone in the near term.
Technical indicators
4-hour MACD – The MACD for BCH/USD is losing pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently below the 50 level.
Key Support Levels – 5 and 0.
Key Resistance Levels – 6 and 4.