- Bitcoin cash price rallied towards the $310 level and later corrected lower against the US Dollar.
- The price remains well supported on the downside near the $280 and $275 levels.
- There is a major breakout pattern in place with resistance near $290 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to start a fresh increase as long as it is above the key $275 support area.
Bitcoin cash price is consolidating above the $275 support against the US Dollar. BCH is likely to climb sharply higher once it settles above the $295 resistance level.
Bitcoin Cash Price Analysis
This past week, there was a strong rise in bitcoin cash price above the $280 and $290 levels against the US Dollar. The BCH/USD pair even broke the $300 resistance level and the 55 simple moving average (4-hours). It traded close to the $310 level and recently started a downside correction. It broke the $300 and $294 support levels to enter a short-term bearish zone. Besides, there was a break below the 23.6% Fib retracement level of the last wave from the $228 swing low to $309 high.
However, the decline was protected by the $270 support area and the 55 simple moving average (4-hours). Moreover, the 50% Fib retracement level of the last wave from the $228 swing low to $309 high acted as a strong support. The price bounced back and it is currently trading above the $280 level and the 55 SMA. More importantly, there is a major breakout pattern in place with resistance near $290 on the 4-hours chart of the BCH/USD pair.
The pair is currently trading just above the triangle resistance at $290. Once it gains pace above the $292 level and the $295 resistance, there could be strong gains. The next key resistance is near the $300 level, where sellers may emerge. Above $300, the price may even break the $310 level in the near term.
Looking at the chart, bitcoin cash price is clearly attempting a bullish break above $292 and $295. Conversely, if there is a downside correction, the price may find bids near the $280 support. The main buy zone could be $275, below which the price could retest $268. Any further losses might trigger a bearish wave in BCH below the $250 support level in the coming days.
Technical indicators
4 hours MACD – The MACD for BCH/USD is slowly gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level and is moving higher.
Key Support Levels – $280 and $275.
Key Resistance Levels – $295 and $300.
