Key Points
- Bitcoin cash price started a new upside wave after a minor correction towards $560 against the US Dollar.
- There was a break above a major bearish trend line with resistance at $600 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might dip a few points once again, but most likely to find support near $600.
Bitcoin cash price is poised for more gains above $600 against the US Dollar. BCH/USD might retest $680 or could even break it.
Bitcoin Cash Price Trend
The past few days were very bullish for Bitcoin cash price as it moved above $580 and $600 against the US Dollar. After trading as high as $684, there was a minor correction initiated. The price traded as low as $560 where buyers appeared and protected further declines. A new upside wave was initiated and the price moved above the 23.6% Fib retracement level of the last decline from the $684 high to $560 low.
During the upside move, there was a break above a major bearish trend line with resistance at $600 on the hourly chart of BCH/USD. The pair also broke the 50% Fib retracement level of the last decline from the $684 high to $560 low. These all are positive signs and calling for more gains above $600. At present, the price is facing resistance near $640 and the 61.8% Fib retracement level of the last decline from the $684 high to $560 low. Therefore, there is a chance of a minor correction towards the $620 or $600 levels.
Any major correction should be limited by $600 considering the current market sentiment since BCH remains a buy on dips.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is placed well in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently near the 62 level.
Major Support Level – $600
Major Resistance Level – $640
Charts courtesy – Trading View, Kraken
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