- Bitcoin cash price started an upside correction from the $270 support area against the US Dollar.
- The price is currently holding the $285 support area and it could rise in the near term.
- There is a connecting bearish trend line forming with resistance near $301 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair could start a strong upward move if it breaks the $300 and $305 resistance levels.
Bitcoin cash price is showing positive signs above the $285 support against the US Dollar. A clear break above $305 might push BCH further higher in the near term.
Bitcoin Cash Price Analysis
This past week, bitcoin cash price extended its decline below the $285 support against the US Dollar. The BCH/USD pair even broke the $280 support and the 55 simple moving average (4-hours). Finally, the price tested the $270 support and later started consolidating losses. As a result, there was an upside correction above the $280 and $290 resistance levels. The price even settled above $285 plus 55 simple moving average (4-hours).
The bulls pushed the price above the $300 level, but they struggled to remain in action. A swing high was formed near $306 and the price recently corrected lower. It traded below the $300 level plus the 23.6% Fib retracement level of the recent wave from the $270 low to $306 high. However, the $285 support level is acting as a decent buy zone along with the 55 SMA.
Moreover, the 50% Fib retracement level of the recent wave from the $270 low to $306 high acted as a support. The price is now trading nicely above the $290 level and it seems like it could continue higher. An immediate resistance is near the $300 level. There is also a connecting bearish trend line forming with resistance near $301 on the 4-hours chart of the BCH/USD pair.
A successful break above the trend line could push the price towards the $305-$306 resistance area. In the mentioned case, the price might continue to climb towards the $315 and $325 resistance levels. Conversely, the price could revisit the $285 support area.
Looking at the chart, bitcoin cash price is showing positive signs above the $285 support level. As long as there is now close below $285, the price could break the $305 resistance. If there is a downside break below $285, the price may revisit the $270 support.
Technical indicators
4 hours MACD – The MACD for BCH/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently well above the 50 level.
Key Support Levels – $285 and $270.
Key Resistance Levels – $300 and $305.
