Key Points
- Bitcoin cash price started a new upside wave from the $650 support area against the US Dollar.
- There are two bearish trend lines formed with resistance at $770 and $810 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair must break and settle above the $800 resistance zone to gain upside momentum.
Bitcoin cash price is slowly recovering above $700 against the US Dollar. BCH/USD has to move past the $800-810 barrier to remain in a bullish zone in the near term.
Bitcoin Cash Price Resistance
This past week, there were heavy losses in bitcoin cash price below the $1,000 level against the US Dollar. The BCH/USD pair declined and broke the $800 and $700 support levels. However, the $650 level acted as a decent support and prevented further declines. A low was formed at $651 and the price started an upward recovery. It gained pace and broke the 23.6% Fib retracement level of the last decline from the $931 high to $651 low.
However, the price is facing a major hurdle around the $800 level. There are two bearish trend lines formed with resistance at $770 and $810 on the 4-hours chart of the BCH/USD pair. The 50% Fib retracement level of the last decline from the $931 high to $651 low is also positioned near $791. More importantly, the 100 simple moving average (4-hours) is also positioned near the $800 level to act as a major resistance.
Looking at the chart, the price must break and settle above the $800 resistance zone to move further higher in the near term. The next resistance above $800-810 is around the $900 level. On the downside, supports are seen near the $720, $700 and $650 levels.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is back in the bullish zone with positive signs.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Level – $700
Major Resistance Level – $810