Bitcoin Cash Price Analysis: BCH/USD Facing Uphill Task
Bitcoin cash price found support near the $1,220 level and recovered slightly against the US Dollar.
There is a short-term bearish trend line forming with resistance at $1,340 on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair is facing many hurdles on the upside near $1,340 and $1,350 resistance levels.
Bitcoin cash price is slowly recovering from $1,220 against the US Dollar. BCH/USD may correct in the short term, but gains above $1,350 wont be easy.
Bitcoin Cash Price Resistance
Yesterday, there was a sharp downside move below $1,300 in bitcoin cash price against the US Dollar. The price even traded below the $1,240 support level and almost tested the $1,200 support. A low was formed near $1,220 before the price started an upside recovery. It moved above the 23.6% Fib retracement level of the last decline from the $1,490 high to $1,220 low.
It also succeeded in clearing the $1,300 resistance, but there are many barriers on the upside. There is also a short-term bearish trend line forming with resistance at $1,340 on the hourly chart of the BCH/USD pair. Moreover, the 50% Fib retracement level of the last decline from the $1,490 high to $1,220 low is placed near the $1,360 level to act as a crucial resistance. In short, it seems like there is a major barrier forming near $1,340 and $1,350 resistance levels. A break and close above $1,350 may well push the price towards the 100 hourly simple moving average, which is the next resistance before $1,400.
Looking at the chart, the price is showing positive signs above $1,240. However, a break and close above $1,350, $1,380 and $1,400 wont be easy. On the downside, supports are seen at $1,300 and $1,240.
Looking at the technical indicators:
Hourly MACD The MACD for BCH/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) The RSI for BCH/USD is now above the 50 level.
Major Support Level $1,240
Major Resistance Level $1,350
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