- Bitcoin cash price started a downside correction from the $367 high against the US Dollar.
- The price found support near the $310 level and it is currently surging towards $360.
- There was a break above a key contracting triangle with resistance near $338 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could continue to rise towards $375 if it clears the $350 resistance area.
Bitcoin cash price is showing a lot of bullish signs above $320 against the US Dollar. BCH/USD is likely to accelerate higher towards $375 unless it breaks $310.
Bitcoin Cash Price Analysis
This week, bitcoin cash price gained a strong bullish momentum above the $300 barrier against the US Dollar. Moreover, BCH price rallied above the $320 resistance and settled nicely above the 55 simple moving average (4-hours).
Finally, the price rallied above the $350 and $360 levels. A new 2020 high was formed near $367 before the price started a downside correction. It traded below the $340 support level, but the bulls were able to protect the $310 support area.
A low is formed near $310 and the price started a fresh increase. It broke the $325 and $330 resistance levels. Besides, there was a break above the 50% Fib retracement level of the downward correction from the $367 high $310 low.
More importantly, there was a break above a key contracting triangle with resistance near $338 on the 4-hours chart of the BCH/USD pair. Bitcoin cash price is now trading near the $345 resistance.
An immediate resistance is near the $350 level or the 76.4% Fib retracement level of the downward correction from the $367 high $310 low. If there is a clear break above the $350 resistance, the price is likely to climb towards $367 or $370.
Any further gains above $375 might lead the price towards the $400 resistance. Conversely, the price could struggle to continue above the $350 and $360 resistance levels.
In the mentioned case, the price is likely to correct again below $340 and $330. The main supports on the downside are near $320 and $310.
Looking at the chart, bitcoin cash price is showing a lot of bullish signs above $330 and $3540. Therefore, there are high chances of more upsides above the $350 and $360 resistance levels in the near term.
4 hours MACD – The MACD for BCH/USD is currently gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently well above the 55 level.
Key Support Levels – $330 and $310.
Key Resistance Levels – $350 and $370.