Key Points
- Bitcoin cash price extended gains and tested the $800 resistance area against the US Dollar.
- There is a major contracting triangle forming with support near $775 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may correct a few points in the near term, but it remains supported above $740.
Bitcoin cash price is placed nicely in a bullish trend above $740 against the US Dollar. BCH/USD must clear the $800 hurdle for more gains in the near term.
Bitcoin Cash Price Support
There was a decent upside move in bitcoin cash price above the $780 level against the US Dollar. The price surpassed the last swing high and tested the $800 resistance area. However, the price failed to surpass the mentioned $800 resistance, and there was a slight bearish reaction. A short-term top was formed near the $799.9 level before the price started a downside correction.
It traded below the 23.6% Fib retracement level of the last upside wave from the $720 low to $799 high. At the moment, sellers are attempting a close below a major contracting triangle forming with support near the $775 on the hourly chart of the BCH/USD pair. A successful close below the mentioned $775 level could push the price towards the next support near $750. The 61.8% Fib retracement level of the last upside wave from the $720 low to $799 high is also around $750.
Looking at the chart above, a major support is near the $740 level and the 100 hourly simple moving average. Therefore, as long as the price is above $740, it remains supported for a break above $800. On the upside, resistances on the way up are $780, $800 and $820.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD moved down sharply towards the 40 level.
Major Support Level – $740
Major Resistance Level – $800