- Bitcoin cash price tested the $305-300 support zone once again against the US Dollar and found strong bids.
- There was a break above a connecting bearish trend line with resistance at $312 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might extend the current correction towards the $330-340 resistance area.
Bitcoin cash price is holding an important support against the US Dollar. BCH/USD might gain traction short-term to test the $340 barrier.
Bitcoin Cash Price Correction
There was yet another test of the $305-300 support in Bitcoin cash price against the US Dollar. The price found strong buying interest near $305 and as a result started an upside move. A low was formed at $304.8 before a correction was initiated. Buyers were able to move the price above the 23.6% Fib retracement level of the last decline from the $357 high to $304 low.
The best part was a break above a connecting bearish trend line with resistance at $312 on the hourly chart of BCH/USD. The pair is currently showing a few positive signs above $310 and trading with a decent bias. At present, the pair is testing the 38.2% Fib retracement level of the last decline from the $357 high to $304 low at $325. Once there is a break above $325, there is a chance of a move towards $340. The $335-340 zone is a major resistance for buyers and most likely to prevent gains in the short term.
If buyers succeed in clearing $340, there can be a test of the next resistance at $355. On the downside, the $305-300 region remains a major support in the near term for BCH.
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 has moved above the 50 level.
Major Support Level – $305
Major Resistance Level – $340
Charts courtesy – Trading View, Kraken
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
Let’s block ads! (Why?)