Key Points
- Bitcoin cash price gained upside momentum and broke a major resistance at $1,500 against the US Dollar.
- Yesterday’s highlighted key connecting bearish trend line with resistance at $1,370 was breached on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently facing a tiny resistance near $1,540 and it may correct a few points lower.
Bitcoin cash price is rising sharply above $1,500 against the US Dollar. BCH/USD has to move past $1,540 to continue its upside momentum.
Bitcoin Cash Price Support
There was a decent start of an upside wave from the $1,350 support in bitcoin cash price against the US Dollar. The price gained bullish momentum and it succeeded in clearing a few important resistances, such as $1,380 and $1,400. To start with, buyers managed to clear the 61.8% Fib retracement level of the last downside leg from the $1,480 swing high to $1,240 low.
Later, yesterday’s highlighted key connecting bearish trend line with resistance at $1,370 was breached on the hourly chart of the BCH/USD pair. The pair gained traction and moved above the $1,450 resistance and cleared the last swing high of $1,480. It opened the doors for more gains and the price moved above $1,500. These all are positive signs, suggesting more gains above $1,500. At the moment, the price is testing the 1.236 Fib extension of the last downside leg from the $1,480 swing high to $1,240 low. Therefore, there is a chance of a minor downside correction towards the $1,500 and $1,480 support levels.
Looking at the chart, it seems like downsides could be limited in the short term below $1,480. As long as the price is above $1,500 and $1,480, it is likely to break $1,540 for more gains.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently near the overbought levels.
Major Support Level – $1,480
Major Resistance Level – $1,540