Key Points
- Bitcoin cash price found support near the $684 level and started a recovery against the US Dollar.
- There was a break above a short-term bearish trend line with resistance at $705 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair could continue to trade higher towards the next resistance at $740 in the near term.
Bitcoin cash price is slowly recovering above $700 against the US Dollar. BCH/USD may perhaps recover further towards the next hurdle at $740.
Bitcoin Cash Price Recovery
This past week, we saw heavy declines below the $750 support in bitcoin cash price against the US Dollar. The BCH/USD pair declined and broke the $720 and $700 support levels. It traded as low as $684 and later started an upside correction above $700. It broke the 23.6% Fib retracement level of the last decline from the $736 high to $684 low. It seems like the price moved into a short-term positive zone above $700.
During the rise, there was a break above a short-term bearish trend line with resistance at $705 on the hourly chart of the BCH/USD pair. At the moment, the price is trading near the $7220 resistance and the 100 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last decline from the $736 high to $684 low is at $716. Therefore, a break and close above the $720 resistance could open the doors for more gains. The next major hurdle on the upside is near the last high at $736 and $740.
Looking at the chart, BCH price is slowly moving higher, but upsides may well be limited near the $735-740 zone. Above this, the price could trade above $750 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 55 level.
Major Support Level – $700
Major Resistance Level – $740
