- Bitcoin cash price rallied more than 10% and it broke the key $400 barrier against the US Dollar.
- The price traded as high as $459 and it is currently consolidating gains.
- There is a short term ascending channel forming with support near $435 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair remains well bid above the $435 and $420 levels in the near term.
Bitcoin cash price is showing a lot of positive signs above $420 against the US Dollar. BCH/USD seems to be aiming another upward move towards the $500 level in the near term.
Bitcoin Cash Price Analysis
This week, bitcoin cash price started a strong rise above the $380 resistance area against the US Dollar. Moreover, BCH price settled above the $396 pivot level and the 55 simple moving average (4-hours).
Finally, the bulls pushed the price above the $420 and $435 level. It traded to a new 2020 high at $459 and it is currently consolidating gains. Besides, there was a minor downside correction below the $440 level.
The price dipped below the 23.6% Fib retracement level of the upward move from the $371 low to $459 high. However, the price remained well bid above the $420 level.
The 50% Fib retracement level of the upward move from the $371 low to $459 high also acted as a support. Additionally, it seems like there is a short term ascending channel forming with support near $435 on the 4-hours chart of the BCH/USD pair.
On the upside, a clear break above the $450 and $460 levels may perhaps open the doors for a larger upward move. The next stop could be $500. An intermediate resistance might be near the $485 level.
On the downside, the channel support at $435, below which bitcoin cash price might decline towards the $420 support level. The main support for the current trend is near the $396-$400 area (the recent breakout zone). Any further losses may perhaps push the price into a bearish zone below $380.
Looking at the chart, bitcoin cash price is clearly gaining strength above $420 and $435. As long as there is no close below the $400 handle, there are chances of another upward move above $450. The key target for the bulls could be $500.
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 correcting lower from well above the 70 level.
Key Support Levels – $435 and $420.
Key Resistance Levels – $450 and $485.
