Key Points
- Bitcoin cash price started an upside correction and moved above the $450 resistance against the US Dollar.
- There was a break above this week’s followed key bearish trend line near $445 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair climbed above the $450 and $460 levels and it may continue to trade higher towards $500.
Bitcoin cash price recovered nicely from the $410 low against the US Dollar. BCH/USD is likely to recover further towards the $480 and $500 levels.
Bitcoin Cash Price Recovery
Yesterday, we discussed how bitcoin cash price is struggling to break the $440 and $450 resistances against the US Dollar. Later, the BCH/USD pair managed to gain traction and moved above the $450 resistance. The upside move was strong as the price broke the 61.8% Fib retracement level of the last slide from the $478 high to $410 low. The price even settled above $450 and the 100 hourly simple moving average.
More importantly, there was a break above this week’s followed key bearish trend line near $445 on the hourly chart of the BCH/USD pair. The pair traded as high as $475 and it is currently correcting lower. It already tested the 23.6% Fib retracement level of the recent wave from the $410 low to $475 high. On the downside, there are many supports around the $450 level. The stated $450 level was a resistance earlier and now it could provide support along with the 100 hourly SMA. Below $450, the 50% Fib retracement level of the recent wave from the $410 low to $475 high is at $443.
Looking at the chart, BCH price is placed nicely above the $445-450 zone and it could continue to move higher towards $480-500.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is positioned nicely above the 60 level.
Major Support Level – $450
Major Resistance Level – $480
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