Bitcoin Cash Price Technical Analysis – BCH/USD Remains Supported

Bitcoin Cash Price Technical Analysis – BCH/USD Remains Supported

Key Points

• bitcoin cash price started consolidating gains above the $1,420 level against the US Dollar.
• There is a major bullish trend line forming with support at $1,440 on the hourly chart of the BCH/USD pair (data feed from Kraken).
• The pair may correct a few points in the near term, but it remains supported above $1,420.

bitcoin cash price is placed nicely in a bullish zone against the US Dollar. BCH/USD may perhaps resume its upside once the current correction is over.

bitcoin Cash Price Consolidation

After a major upside move above the $1,500 level, bitcoin cash price faced sellers against the US Dollar. The price traded as high as $1,538 before starting a downside correction. It declined and moved below the $1,500 support to start a short-term correction. It is currently testing the 23.6% Fib retracement level of the last wave from the $1,240 low to $1,538 high.

However, there are many supports on the downside on the way up to $1,400. First, there is a major bullish trend line forming with support at $1,440 on the hourly chart of the BCH/USD pair. Second, the 38.2% Fib retracement level of the last wave from the $1,240 low to $1,538 high. Third, the 100 hourly simple moving average near the $1,400 level. Finally, the 50% Fib retracement level of the last wave from the $1,240 low to $1,538 high at $1,389. Having said that, there are very less chances that the pair may correct below $1,400 in the short term.

Looking at the chart, the price remains supported above the $1,420 level. On the upside, the $1,500 level is an initial resistance, followed by the $1,540 level. A break above the stated $1,540 level might open the doors for more gains towards $1,600.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slowly moving in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD has moved below the 50 level.

Major Support Level – $1,420

Major Resistance Level – $1,500

Published at Fri, 04 May 2018 04:08:58 +0000

Analysis