Bitcoin Cash Price Analysis: BCH/USD Recovery Facing Hurdles
- Bitcoin cash price started a short term correction and moved above $420 against the US Dollar.
- There is an ascending channel in place with support at $415 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair recently tested the channel resistance and failed to break the $422-423 zone.
Bitcoin cash price remains in a bearish zone below $430 against the US Dollar. BCH/USD may correct further higher, but it is likely to find resistance near $425-430.
Bitcoin Cash Price Analysis
Yesterday, we saw a major downside move below the $430 support in bitcoin cash price against the US Dollar. The BCH/USD pair traded as low as $408 and settled below the 100 hourly simple moving average. Later, the price started a short term recovery and moved above the $415 level. It also managed to clear the 23.6% Fib retracement level of the recent drop from the $438 high to $408 low.
The upside move was positive as there was a spike above the $420 level. However, the price failed to surpass the $422-423 zone. There was also no test of the 50% Fib retracement level of the recent drop from the $438 high to $408 low. At the outset, there is an ascending channel in place with support at $415 on the hourly chart of the BCH/USD pair. The pair is currently moving lower towards the channel support at $415 where buyers could emerge. In the short term, it seems like the price may correct towards the $425 or $430 resistance levels.
Looking at the chart, BCH price remains in a downtrend as long as there is no close above $430. On the downside, the recent low at $408 is a decent support followed by the $400 handle.
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 back above the 50 level.
Major Support Level – $415
Major Resistance Level – $425