Bitcoin Cash Price Analysis: BCH/USD Rallies Above Key Resistance

Key Points

  • Bitcoin cash price made a solid upward move and traded above the $500 barrier against the US Dollar.
  • Yesterday’s highlighted important bearish trend line was breached with resistance at $442 on the hourly chart of the BCH/USD pair (data feed from Kraken).
  • The pair is now placed nicely in a bullish zone above the $500 and $510 support levels.

Bitcoin cash price gained traction and rallied above $500 against the US Dollar. BCH/USD is consolidating and remains supported for more gains.

Bitcoin Cash Price Analysis

There was a solid buying interest emerged around the $450 level in bitcoin cash price against the US Dollar. The BCH/USD pair started an upward move and traded above the $460 and $470 resistance levels. The price action was positive as the price gained more than 20% and settled above the 100 hourly simple moving average. The rally was such that the price broke the $500 barrier.

More importantly, the upward move was initiated after yesterday’s highlighted important bearish trend line was breached with resistance at $442 on the hourly chart of the BCH/USD pair. The pair traded as high as $550 and later started a downside correction. It moved below the 23.6% Fib retracement level of the last wave from the $425 low to $550 high. However, downsides were contained the by the $500 level. The mentioned $500 level was a resistances earlier and now it is acting as a support. Below this, the next major support is near $485. It represents the 50% Fib retracement level of the last wave from the $425 low to $550 high.

Bitcoin Cash Price Analysis BCH USD

Looking at the chart, BCH price is trading nicely with a bullish bias above the $500 level. As long as the price is above $485 and $500, there could be more gains.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slowly reducing its bullish slope.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well above the 55 level.

Major Support Level – $500

Major Resistance Level – $550

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by Aayush Jindal on September 27, 2018 at 09:58AM