Key Points Bitcoin cash price corrected lower, but remains supported above $1200 against the US Dollar. There is a major contracting triangle forming with resistance at $1480 on the 4-hours chart of BCH/USD (data feed from Kraken). The pair might soon break the triangle resistance and trade above $1500 in the near term.
Bitcoin cash price is in an uptrend above $1200 against the US Dollar. BCH/USD might soon break $1500 for more gains toward $1800.
Bitcoin Cash Price Resistance
There was a slow and steady decline in bitcoin cash price from the $1780 swing low against the US Dollar. The price declined below the $1400 and $1300 support levels. However, the downside move found support near $1200 and later the price started moving higher. It has moved above the 38.2% Fib retracement level of the last decline from the $1780 high to $1203 low.
The current price action is positive and it seems like there is a major contracting triangle forming with resistance at $1480 on the 4-hours chart of BCH/USD. The triangle resistance is near the 50% Fib retracement level of the last decline from the $1780 high to $1203 low. Therefore, it would be interesting to see whether the price can break the $1450-1500 resistance or not. Should there be a break and close above $1450, the price could move further higher towards the $1700 and $1800 levels.
On the downside, an initial support is around the $1400 level and the 100 simple moving average (4-hours). Below the mentioned $1400, there is a crucial support around $1350 and the triangle. However, the most important trend support is close to the $1200 level in the near term.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slowly moving back in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level and is moving higher.
Major Support Level – $1350
Major Resistance Level – $1500
Charts courtesy – Trading View, Kraken
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