Key Points
- Bitcoin cash price is recovering from the $1205 low against the US Dollar, but it is facing many resistances.
- There is a crucial bearish trend line forming with resistance at $1410 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might struggle to move above the $1400-1410 resistance area in the near term.
Bitcoin cash price is recovering from $1200 against the US Dollar. BCH/USD has to move above the $1400 resistance zone to recover further.
Bitcoin Cash Price Resistance
There were a couple of downsides swing moves in bitcoin cash price this past week towards $1200 against the US Dollar. The main reason was BTC/USD’s sharp rise above $17,000. BCH declined and tested the $1200 support area. However, buyers were able to protect further declines and pushed the price back above $1250. The price also traded above the 50% Fib retracement level of the last decline from the $1500 high to $1205 low.
At the moment, the price is trading above the $1350 pivot and the 100 hourly simple moving average. It seems like the 61.8% Fib retracement level of the last decline from the $1500 high to $1205 low at $1385 is acting as a resistance and preventing gains. Above $1385, there is a crucial bearish trend line forming with resistance at $1410 on the hourly chart of BCH/USD. Therefore, it seems like the $1400 resistance zone is very important and a break above it won’t be easy.
Moreover, the $1440 level is also a major resistance above the mentioned $1400. On the downside, the $1350 level is an initial support followed by $1320. The most important support on the downside remains at $1200.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is moving nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level.
Major Support Level – $1320
Major Resistance Level – $1400
Charts courtesy – Trading View, Kraken
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