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 ” target=”_blank” rel=”noopener nofollow” data-wpel-link=”external”>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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