- Bitcoin cash price is in a correction mode and holding the $1100 support against the US Dollar.
- There is a major bearish trend line forming with resistance at $1200 on the hourly chart of BCH/USD (data feed from Kraken).
- The price has to move above $1200 and the 100 hourly simple moving average to gain traction.
Bitcoin cash price is holding an important support near $1100 against the US Dollar. BCH/USD needs to move past $1200 and 100 hourly SMA for further gains.
Bitcoin Cash Price Resistance
It seems like there is a consolidating phase forming in bitcoin cash price above $1100 against the US Dollar. The price recently moved below the 38.2% Fib retracement level of the last leg up from the $838 low to $1380 high. Earlier, the price was able to hold the 100 hourly simple moving average and $1200 support. Later, the price moved below the $1200 support and the 100 hourly simple moving average. Both are now acting as a resistance and preventing further gains.
There is also a major bearish trend line forming with resistance at $1200 on the hourly chart of BCH/USD. The pair needs to break the trend line, $1200 resistance and the 100 hourly SMA to gain traction. On the downside, the most important support is near $1100. Moreover, the 50% Fib retracement level of the last leg up from the $838 low to $1380 high is also around $1100.
Therefore, the price remains in a range of $1100-1200. A break above $1200 is needed for more gains. On the other hand, the $1100 level is a crucial support and must hold declines in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is almost flat in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently moving higher and is above the 50 level.
Major Support Level – $1100
Major Resistance Level – $1200
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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