- Bitcoin cash price surged higher this past week and broke $600 against the US Dollar.
- There is a major bullish trend line forming with support at $600 on the 4-hours chart of BCH/USD (data feed from Kraken).
- The pair must remain above the $600 handle if it has to stay in the bullish zone.
Bitcoin cash price rocketed higher towards $700 against the US Dollar. BCH/USD is currently correcting and holding an important support at $600.
Bitcoin Cash Price Support
It was a bullish week for Bitcoin cash price as it climbed above the $500 and $600 levels against the US Dollar. The price even made a nice upside move above $650 to test the $700 handle. However, it failed at $684 and started a downside correction. There was a downside reaction towards below the 23.6% Fib retracement level of the last wave from the $430 low to $684 high.
However, the downside move found support near $585. The 38.2% Fib retracement level of the last wave from the $430 low to $684 high also protected losses. On the downside, there is a major bullish trend line forming with support at $600 on the 4-hours chart of BCH/USD. As long as the pair remains above the trend line support and $600, it is likely to continue moving higher. On the upside, the $650 and $685 levels are resistance levels. However, the most important resistance is near $700.
On the other hand, a break of $600 could ignite a wave towards $550 and the 50% Fib retracement level of the last wave from the $430 low to $684 high. The overall trend is bullish as long as the price is above $600.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slightly in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is moving lower towards the 60 level.
Major Support Level – $600
Major Resistance Level – $685
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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