Key Points
- Bitcoin cash price is consolidating below the $ 650 resistance area against the US Dollar.
- There is a contracting triangle forming with support near $ 630 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may well break the triangle to test the $ 600 support before moving higher again.
Bitcoin cash price is positioned nicely above $ 600 against the US Dollar. BCH/USD could correct lower in the short term, but dips remain supported.
Bitcoin Cash Price Support
Recently, there was a nice upside move in bitcoin cash price above the $ 600 resistance against the US Dollar. The BCH/USD pair traded above the $ 650 level and settled above the 100 hourly simple moving average. A high was formed at $ 660 and later the price started consolidating gains. It tested the 23.6% Fib retracement level of the last wave from the $ 549 low to $ 660 high.
However, it seems like buyers are defending the $ 620-630 support area. Moreover, there is a contracting triangle forming with support near $ 630 on the hourly chart of the BCH/USD pair. If the price breaks the triangle support, it could correct lower below $ 620 in the near term. The next major support is near the $ 600 level. It represents the 50% Fib retracement level of the last wave from the $ 549 low to $ 660 high. Below this, the next important support is near the $ 580 level and the 100 hourly simple moving average. On the other hand, if the price breaks higher, it could surpass the $ 650-660 zone for more gains towards $ 700.
Looking at the chart, BCH price is likely to correct lower towards $ 600 in the near term. Having said that, dips remains nicely supported near $ 600 and $ 580.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is still above the 50 level.
Major Support Level – $ 620
Major Resistance Level – $ 650
