Key Points
- Bitcoin cash price is recovering and is currently trading above $1,100 against the US Dollar.
- There was a break above a major contracting triangle with resistance at $1,040 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair is now trading comfortably above the $1,100 level and the 100 hourly simple moving average.
Bitcoin cash price has moved in the positive zone against the US Dollar. BCH/USD may continue to gain momentum above the $1,150 level in the near term.
Bitcoin Cash Price Support
There was a decent recovery initiated from the $960 support area in bitcoin cash price against the US Dollar. The price traded higher and moved above the $1,000 and $1,050 resistance levels. The trend is positive since the price was able to close above the $1,000 level and the 100 hourly simple moving average. Moreover, there was a decent support base formed above the $1,000 level.
More importantly, there was a break above a major contracting triangle with resistance at $1,040 on the hourly chart of BCH/USD. The pair also traded above the $1,100 resistance and formed a high at $1,159. At the moment, the pair is consolidating above the $1,100 level. An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the $962 low to $1,159 high. However, the most important support is near the $1,050 level.
The 50% Fib retracement level of the last wave from the $962 low to $1,159 high is also near $1,060 to act as a support. The overall bias is positive as long as the price is above the $1,050 support and the 100 hourly SMA.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now placed well above the 50 level.
Major Support Level – $1,050
Major Resistance Level – $1,150
Charts courtesy – Trading View