Key Points
- Bitcoin cash price started a downside correction after trading above the $875 level against the US Dollar.
- There is a key connecting bullish trend line formed with support at $830 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair must stay above the $820 and $830 support levels to avoid more declines.
Bitcoin cash price is correcting lower against the US Dollar. BCH/USD is currently approaching an important support area near the $820-830 levels.
Bitcoin Cash Price Support
Yesterday, we saw a decent upward move above the $750 level in bitcoin cash price against the US Dollar. The BCH/USD pair even broke the $870 level and traded close to the $880 level. A high was formed near $878 before the price started a downside correction. The price declined and traded below the 23.6% Fib retracement level of the last wave from the $771 low to $878 high.
However, the price found support near a major pivot area at $820. More importantly, there is a key connecting bullish trend line formed with support at $830 on the hourly chart of the BCH/USD pair. The 50% Fib retracement level of the last wave from the $771 low to $878 high is also around $825. Lastly, the 100 hourly simple moving average is positioned near the $820 level. Therefore, the $820-830 support zone holds a lot of importance in the short term. Below this, the price may perhaps decline further towards the $790 level.
Looking at the chart, the price is finding strong buying interest above the $820 level. If the price continues to stay above $820, it could bounce back above the $850 level. Above this last, BCH may retest the $878 high.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently just below the 50 level.
Major Support Level – $820
Major Resistance Level – $850
