Bitcoin Cash price rallied over 10% and broke the 5 resistance. BCH is now facing strong resistance near the 5 zone.
- Bitcoin cash price started a fresh surge above the 2 resistance.
- The price is trading above 5 and the 100 simple moving average (4 hours).
- There was a break above a key bearish trend line with resistance near 5 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
- The pair could continue to move up if it clears the 5 resistance zone.
Bitcoin Cash Price Rallies Above 0
After forming a base above the 0 level, Bitcoin Cash price started a steady increase. It broke the 5 resistance to enter a positive zone, like Bitcoin and Ethereum.
There was a break above a key bearish trend line with resistance near 5 on the 4-hour chart of the BCH/USD pair. There was a strong increase above the 2 and 5 resistance levels. The price is up over 10% and it is now testing the 5 resistance.
BCH is now showing positive signs above 5 and the 100 simple moving average (4 hours). It is also above the 23.6% Fib retracement level of the upward move from the 9 swing low to the 5 high.
Source: BCH/USD on TradingView.com
The price is now struggling to clear the 5 resistance. To continue higher, the price must settle above 5. The next major resistance is near 5, above which the price might accelerate higher toward the 0 level. Any further gains could lead the price toward the 0 resistance zone.
Fresh Drop in BCH?
If Bitcoin Cash price fails to clear the 5 resistance, it could start a fresh decline. Initial support on the downside is near the 5 level.
The next major support is near the 2 level or the 61.8% Fib retracement level of the upward move from the 9 swing low to the 5 high, where the bulls are likely to appear. If the price fails to stay above the 2 support, the price could test the 5 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 gaining pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently in the overbought zone.
Key Support Levels – 5 and 2.
Key Resistance Levels – 5 and 5.