- Bitcoin cash price declined towards the $300 support level against the US Dollar.
- The price is currently recovering and showing positive signs above the $320 level.
- There was a break above a major bearish trend line with resistance near $324 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could start a major upward move once it clears the $350 and $360 resistance levels.
Bitcoin cash price is forming a decent support base above $320 against the US Dollar. BCH/USD is likely to rise steadily above the $350 and $360 barriers in the near term.
Bitcoin Cash Price Analysis
In the past few days, bitcoin cash price extended its decline below the $350 support against the US Dollar. BCH price even settled below the $350 level and the 55 simple moving average (4-hours).
Finally, the price declined below the $320 support and tested the key $300 support area. A new monthly low is formed near the $299 level and the price is currently correcting higher.
There was a break above the 23.6% Fib retracement level of the last key decline from the $410 high to $299 low. Besides, the price was able to recover above the $320 zone and the 55 simple moving average (4-hours).
More importantly, there was a break above a major bearish trend line with resistance near $324 on the 4-hours chart of the BCH/USD pair. The pair is now trading above $330, but it is struggling to gain momentum above the $340 level.
On the upside, there are many hurdles for the bulls near the $350 and $360 levels. An intermediate resistance is near the $355 level. It coincides with the 50% Fib retracement level of the last key decline from the $410 high to $299 low.
Therefore, a clear break above the $350 and $360 resistance levels is must for a strong uptrend formation. The next major hurdles are seen near the $380 and $400 levels.
Conversely, the price could fail to climb above the $350 resistance level. In the mentioned case, there is a risk of a sharp decline below the $320 level.
Looking at the chart, bitcoin cash price is showing a few positive signs above $320 and $330. Having said that, the bulls need to overcome the $350 hurdle to start a real upward move in the near term.
Technical indicators
4 hours MACD – The MACD for BCH/USD is currently losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level.
Key Support Levels – $320 and $300.
Key Resistance Levels – $350 and $360.