- Bitcoin cash price surged higher after forming a support base near the $120 level against the US Dollar.
- The price climbed above the $130 and $140 resistance levels before sellers appeared near $150.
- There is a short term bearish trend line formed with resistance at $143 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to break the $143 and $145 resistance levels to start a fresh rally in the near term.
Bitcoin cash price settled above the key $130 and $134 resistance levels against the US Dollar. BCH is currently correcting lower, but it could resume its rise above $150 and $160.
Bitcoin Cash Price Analysis
After forming a support base, bitcoin, ripple, Ethereum, and bitcoin cash rallied against the US Dollar. The BCH/USD pair started a solid upward move from the $120 support area and climbed above $130. During the rise, the price broke a crucial bearish trend line with resistance at $122 on the 4-hours chart. It opened the doors for a sharp rally above the $130 resistance and the 55 simple moving average (4-hours). Buyers gained momentum and the price surged above the $140 and $142 resistances. The price even tested the $150 resistance before it started a downside correction.
It moved below the $145 level and the 23.6% Fib retracement level of the last wave from the $119 low to $150 high. However, the $138-140 zone is currently acting as a support. The next key support is near the $135 level. Moreover, the 50% Fib retracement level of the last wave from the $119 low to $150 high is also near the $135 level. If the price continues to move down, it could test the main support at $131 and the 55 simple moving average (4-hours).
On the other hand, an initial resistance is near the $143 level. There is also a short term bearish trend line formed with resistance at $143 on the same chart. Therefore, a successful break above the trend line and $145 may perhaps clear the path for more gains. In the stated case, the price is likely to climb above the $150 and $154 resistance levels.
Looking at the chart, bitcoin cash price is clearly trading in a bullish zone above $135. There may be short term dips, but as long as the price is above $132, it could bounce back.
Technical indicators
4 hours MACD – The MACD for BCH/USD is currently placed slightly in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD tested the 50 level and moved higher, with a positive angle.
Key Support Levels – $138 and $135.
Key Resistance Levels – $145 and $150.
