Bitcoin Cash Price Analysis: BCH/USD Remains Supported

Key Points

• Bitcoin cash price retested the $740 support zone and is currently holding gains against the US Dollar.
• There is a new connecting bullish trend line formed with support at $742 on the hourly chart of the BCH/USD pair (data feed from Kraken).
• The pair must stay above the $740-750 support and the 100 hourly simple moving average.

Bitcoin cash price is holding gains above $740 against the US Dollar. BCH/USD has to move above the $780 and $800 resistances to gain upside momentum.

Bitcoin Cash Price Support

There was an extended decline in bitcoin cash price below the $780 support against the US Dollar. The BCH/USD pair traded below the $750 support and even spiked below the $740 support. A low was formed near the $735 level and the price recovered from losses. It moved above the 23.6% Fib retracement level of the last decline from the $828 high to $735 low.

More importantly, it settled above the $740 support and the 100 hourly simple moving average. There was also a spike above the 61.8% Fib retracement level of the last decline from the $828 high to $735 low. However, the price failed to hold gains above the $800 level and declined once again. It is currently trading a few points above the $760 support and the 100 hourly SMA. There is also a new connecting bullish trend line formed with support at $742 on the hourly chart of the BCH/USD pair. Therefore, the price remains supported above the $740-750 support zone.

Looking at the chart, the price is struggling to overtake the $800 barrier, above which, the price may retest $828. On the downside, a break and close below the $740 support may perhaps ignite more declines towards the $700 level.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is currently flat in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just above the 50 level.

Major Support Level – $740

Major Resistance Level – $800

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