Key Points
- Bitcoin cash price tested the $650-660 support area and recovered against the US Dollar.
- There is a crucial bearish trend line in place with resistance at $710 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair has to move above the trend line, $710 and $730 resistances to gain upside momentum.
Bitcoin cash price is slowly recovering above $680 against the US Dollar. BCH/USD needs to gather pace above $710 to start an uptrend in the near term.
Bitcoin Cash Price Resistance
This past week, there was a sharp downward move below the $740 support in bitcoin cash price against the US Dollar. The BCH/USD pair declined below the $720 and $700 support levels. It traded close to the $650 support area and a low was formed at $662. Later, the price started an upward correction and moved above the $680 resistance. There was a break above the 23.6% Fib retracement level of the last decline from the $770 high to $662 low.
However, the price is facing a tough challenge near the $710 level. More importantly, there is a crucial bearish trend line in place with resistance at $710 on the 4-hours chart of the BCH/USD pair. The same trend line is close to the 38.2% Fib retracement level of the last decline from the $770 high to $662 low. Above the trend line resistance, the 100 simple moving average (4-hours) is positioned near $730. An intermediate resistance is at $720 and the 50% Fib retracement level. It seems like there are many hurdles formed near $710-730.
Looking at the chart, the price must gain traction above the $710 level to start a fresh upward move. If not, there is a risk of a drop back towards $660.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slowly moving in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Major Support Level – $660
Major Resistance Level – $730
