Key Points
- Bitcoin cash price extended gains and moved above the $560 and $570 levels against the US Dollar.
- There are two bullish trend lines formed with support at $555 and $535 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently correcting lower from the $575 high and it could test the $550 support.
Bitcoin cash price is back in a positive zone above $550 against the US Dollar. BCH/USD is likely to extend gains once it completes the current correction.
Bitcoin Cash Price Trend
Yesterday, we saw a decent upside move above the $530 resistance level in bitcoin cash price against the US Dollar. Later, the BCH/USD pair extended gains and traded above the $550 and $560 resistance levels. The upside move was strong as the price traded as high as $575. Later, the price started a downside move and declined below $570. There was also a break below the 23.6% Fib retracement level of the last leg from the $525 low to $575 high.
However, there are many supports on the downside near the $550 level. An initial support is near $555, which is also a pivot zone. Moreover, there are two bullish trend lines formed with support at $555 and $535 on the hourly chart of the BCH/USD pair. Below the first trend line, the 50% Fib retracement level of the last leg from the $525 low to $575 high is at $550. Therefore, the $550 and $555 levels are likely to act as strong supports if the price corrects lower further.
Looking at the chart, BCH price is currently retreating from highs, but dips remain supported near $550. On the upside, the $575 and $580 levels are important hurdles for buyers in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving lower towards the 50 level.
Major Support Level – $550
Major Resistance Level – $575
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