- Bitcoin cash price is finding bids above the $300 support area against the US Dollar.
- There is a contracting triangle pattern forming with resistance at $324 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is likely to move inside a range above $300 before making the next move.
Bitcoin cash price is stable above $300 against the US Dollar. BCH/USD might trade in a range for some time before attempting an upside break.
Bitcoin Cash Price Resistance
This past week was mostly bearish for Bitcoin cash price as it moved below the $350 support against the US Dollar. There were a few attempts to break the $300 support as well. However, buyers were able to prevent a close below the $300 level and the price started trading in a range. At the moment, it seems like the price is consolidating above $300 and preparing for the next move.
There can be more ranging moves since there is a contracting triangle pattern forming with resistance at $324 on the hourly chart of BCH/USD. The triangle resistance is near the 50% Fib retracement level of the last drop from the $40 high to $300 low. A break and close above the $324-330 levels is required for buyers to gain control. Once there is a break above $325, the 76.4% Fib retracement level of the last drop from the $40 high to $300 low near $340 might be tested.
On the downside, the triangle support sits near $305. The most important support is near $300. Overall, there is a range forming with support near $300 and resistance at $325. A break of either $325 or $300 might ignite the next move.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just above the 50 level.
Major Support Level – $300
Major Resistance Level – $325
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.
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