Bitcoin Cash price rallied over 15% and broke the 5 resistance. BCH is now facing strong resistance near the 2 zone.
- Bitcoin cash price started a fresh surge above the 0 resistance.
- The price is trading above 5 and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support at 8 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 2 resistance zone.
Bitcoin Cash Price Rallies Above 0
After forming a base above the 2 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 strong increase above the 0 and 5 resistance levels. The price gained over 15% and tested the 2 resistance. A high was formed near 3 and the price is now correcting gains. There was a move below the 5 level.
The price tested the 23.6% Fib retracement level of the upward move from the 3 swing low to the 3 high. BCH is now showing positive signs above 0 and the 100 simple moving average (4 hours).
Source: BCH/USD on TradingView.com
There is also a key bullish trend line forming with support at 8 on the 4-hour chart of the BCH/USD pair. If there is another increase, the price might face resistance near 5. To continue higher, the price must settle above 2. The next major resistance is near 2, 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 8 level or the trend line. It is close to the 50% Fib retracement level of the upward move from the 3 swing low to the 3 high, where the bulls are likely to appear. If the price fails to stay above the 8 support, the price could test the 5 support. Any further losses could lead the price toward the 2 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 in the overbought zone.
Key Support Levels – 5 and 8.
Key Resistance Levels – 5 and 2.