Key Points
- Bitcoin cash price formed a support base near $740 and bounced back against the US Dollar.
- There was a break above a key bearish trend line with resistance at $790 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair broke the $800 resistance and the 100 hourly simple moving average to gain traction.
Bitcoin cash price is positioned nicely above the $780 level against the US Dollar. BCH/USD is likely to accelerate higher towards the $850 and $880 levels.
Bitcoin Cash Price Trend
After a major downside move, bitcoin cash price found buying interest near the $740 and $750 levels against the US Dollar. The BCH/USD pair started an upward move and broke the $780 resistance. The price also broke the 23.6% Fib retracement level of the last drop from the $890 high to $740 swing low. It opened the doors for more gains and the price traded above the $800 resistance and the 100 hourly simple moving average.
More importantly, there was a break above a key bearish trend line with resistance at $790 on the hourly chart of the BCH/USD pair. The pair is currently attempting a close above the $820 resistance. Moreover, the 50% Fib retracement level of the last drop from the $890 high to $740 swing low is at $815. Therefore, once there is a close above the $815-820 resistance, the price may perhaps accelerate gains towards $850 and $860. Above this last, the price could even test the $890 high in the near term.
Looking at the chart, the price is slowly gaining momentum above the $800 level. The price may decline a few points in the short term, but it remains supported near the $800 and $780 levels.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is showing positive signs in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 55 level.
Major Support Level – $780
Major Resistance Level – $850
