Bitcoin Cash Price Technical Analysis – Can BCH/USD Surpass This?


Bitcoin cash price is slowly recovering above $580 against the US Dollar. BCH/USD has to settle above $620-650 to maintain bullish bias.

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Key Points

  • Bitcoin cash price climbed towards $680 against the US Dollar before starting a correction.
  • There is a contracting triangle pattern with resistance near $620 forming on the hourly chart of BCH/USD (data feed from Kraken).
  • A break and close above the $620 level is needed for the price to gain further.

Bitcoin cash price is slowly recovering above $580 against the US Dollar. BCH/USD has to settle above $620-650 to maintain bullish bias.

Bitcoin Cash Price Resistance

Recently, there was a decent upside move above $630 level in Bitcoin cash price against the US Dollar. The price traded as high as $676 before facing sellers and starting a correction. The price declined and traded towards a bullish trend line with support at $580 on the hourly chart. Later, it consolidated for some time above the $580 level before starting an upside move.

However, the upside move was protected by a bearish trend line at $640. The current resistance now stands near $620. On the upside the 61.8% Fib retracement level of the last decline from the $676 high to $575 low also acted as a barrier. It seems like a contracting triangle pattern with resistance near $620 forming on the hourly chart of BCH/USD. As long as the price is above $580, there is a chance of BCH breaking the $620-630 resistance area in the near term.

Buyers need to make sure there is no close below $580 else there can be more declines. Buying dips can be considered in the near term with stop below $575. On the upside, a break and close above the $620 level is needed for the price to gain further.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is heading lower towards the 50 level.

Major Support Level – $580

Major Resistance Level – $620

 

Charts courtesy – Trading View, Kraken

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