Key Points
- Bitcoin cash price is trading in a range, but remains supported above the $580 level against the US Dollar.
- There is a connecting bearish trend line forming with resistance at $620 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might correct a few times toward $580-560, but it is likely to find support on the downside.
Bitcoin cash price is holding the $580 support against the US Dollar. BCH/USD needs to break the $630-640 levels to gain upside momentum in the near term.
Bitcoin Cash Price Support
It seems like Bitcoin cash price is correcting lower with a bearish angle below $650 against the US Dollar. However, there are three important supports on the downside – $600, $580 and $560. As long as the price is above these levels, it remains supported for more gains above $650. Recently, the price tested the $560 support zone and recovered toward the $640 level.
However, the upside move was protected by a connecting bearish trend line with current resistance at $620 on the hourly chart of BCH/USD. The pair moved down and traded below the 50% Fib retracement level of the last wave from the $560 low to $644 high. The downside move is currently finding support near $580. Moreover, the 61.8% Fib retracement level of the last wave from the $560 low to $644 high also acted as a support.
On the upside, BCH needs to go through the trend line resistance at $620. Then, it has to settle above $640 for more upsides in the near term. With the current trend, there are chances of it testing $700 if the $560 support remains intact.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is about move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving higher towards the 50 level.
Major Support Level – $580
Major Resistance Level – $620
Charts courtesy – Trading View, Kraken
The post Bitcoin Cash Price Technical Analysis – Can BCH/USD Hold $580-600? appeared first on NEWSBTC.