Key Points
- Bitcoin cash price surged above the $2000 level against the US Dollar before starting a sharp downside correction.
- There is a monster bullish trend line forming with current support at $1300 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is now consolidating in a range above the $1300 level and with resistance at $1750.
Bitcoin cash price rocketed as high as $2600 against the US Dollar. BCH/USD is now correcting lower and remains well below $2000.
Bitcoin Cash Price Trend
There was a sharp upside move in Bitcoin cash price above the $2000 level against the US Dollar. The price rocketed above $2500 and traded to a new all-time high around $2600. Later, there was a sharp downside move below $2000 and the price tumbled by more than $1000. The price traded towards the $1200 support area where buyers protected downside and later BCH started trading in a range.
It moved above the 23.6% Fib retracement level of the last drop from the $2600 high to $1200 low. However, the upside move was capped by the $1800 level. Moreover, the 38.2% Fib retracement level of the last drop from the $2600 high to $1200 low acted as a resistance. On the downside, it seems like there is a monster bullish trend line forming with current support at $1300 on the hourly chart of BCH/USD.
The highlighted trend line support is holding losses above the $1300 level. On the upside, there is a connecting bearish trend line forming with resistance at $1800. As long as the price is above $1200, it can make another upside attempt toward $1800 or higher.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently near the 50 level.
Major Support Level – $1300
Major Resistance Level – $1800
Charts courtesy – Trading View, Kraken
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