Key Points
- Bitcoin cash price is in a correction mode and holding the $1100 support against the US Dollar.
- There is a major bearish trend line forming with resistance at $1200 on the hourly chart of BCH/USD (data feed from Kraken).
- The price has to move above $1200 and the 100 hourly simple moving average to gain traction.
Bitcoin cash price is holding an important support near $1100 against the US Dollar. BCH/USD needs to move past $1200 and 100 hourly SMA for further gains.
Bitcoin Cash Price Resistance
It seems like there is a consolidating phase forming in bitcoin cash price above $1100 against the US Dollar. The price recently moved below the 38.2% Fib retracement level of the last leg up from the $838 low to $1380 high. Earlier, the price was able to hold the 100 hourly simple moving average and $1200 support. Later, the price moved below the $1200 support and the 100 hourly simple moving average. Both are now acting as a resistance and preventing further gains.
There is also a major bearish trend line forming with resistance at $1200 on the hourly chart of BCH/USD. The pair needs to break the trend line, $1200 resistance and the 100 hourly SMA to gain traction. On the downside, the most important support is near $1100. Moreover, the 50% Fib retracement level of the last leg up from the $838 low to $1380 high is also around $1100.
Therefore, the price remains in a range of $1100-1200. A break above $1200 is needed for more gains. On the other hand, the $1100 level is a crucial support and must hold declines in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is almost flat in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently moving higher and is above the 50 level.
Major Support Level – $1100
Major Resistance Level – $1200
Charts courtesy – Trading View, Kraken