Key Points
- Bitcoin cash price is consolidating below the $650 resistance area against the US Dollar.
- There is a contracting triangle forming with support near $630 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may well break the triangle to test the $600 support before moving higher again.
Bitcoin cash price is positioned nicely above $600 against the US Dollar. BCH/USD could correct lower in the short term, but dips remain supported.
Bitcoin Cash Price Support
Recently, there was a nice upside move in bitcoin cash price above the $600 resistance against the US Dollar. The BCH/USD pair traded above the $650 level and settled above the 100 hourly simple moving average. A high was formed at $660 and later the price started consolidating gains. It tested the 23.6% Fib retracement level of the last wave from the $549 low to $660 high.
However, it seems like buyers are defending the $620-630 support area. Moreover, there is a contracting triangle forming with support near $630 on the hourly chart of the BCH/USD pair. If the price breaks the triangle support, it could correct lower below $620 in the near term. The next major support is near the $600 level. It represents the 50% Fib retracement level of the last wave from the $549 low to $660 high. Below this, the next important support is near the $580 level and the 100 hourly simple moving average. On the other hand, if the price breaks higher, it could surpass the $650-660 zone for more gains towards $700.
Looking at the chart, BCH price is likely to correct lower towards $600 in the near term. Having said that, dips remains nicely supported near $600 and $580.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is still above the 50 level.
Major Support Level – $620
Major Resistance Level – $650
