Key Points
- Bitcoin cash price found support around the $700 handle and recovered against the US Dollar.
- There is a major bullish trend line formed with support at $730 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair may dip a few points, but it remains supported near the $730 and $710 levels.
Bitcoin cash price is placed nicely above the $700 pivot level against the US Dollar. BCH/USD could accelerate gains above the $780 level in the near term.
Bitcoin Cash Price Support
This past week, there was a correction initiated from the $830 swing high in bitcoin cash price against the US Dollar. The BCH/USD pair declined and traded below the $800 and $750 support levels. It also declined below the 50% Fib retracement level of the last wave from the $865 low to $830 high. More importantly, there was a close below the $750 pivot level and the 100 simple moving average (4-hours).
It tested the $700 handle where buyers emerged. Moreover, a major bullish trend line with current support at $730 acted as a buy zone on the 4-hours chart of the BCH/USD pair. Lastly, the 76.4% Fib retracement level of the last wave from the $865 low to $830 high also acted as a support. The pair started a fresh upward wave and moved above the $750 pivot level and the 100 SMA. It opened the doors for more gains and the price is now placed nicely above the $740 level.
Looking at the chart, the price may dip a few points in the near term towards the $740 and $730 support levels. However, the price action suggests more gains as long as the price is above $710.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is now placed nicely in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Major Support Level – $730
Major Resistance Level – $800
