Bitcoin cash price is forming a decent support near the $430-432 zone against the US Dollar.There was a break above a key bearish trend line with resistance at $434 on the hourly chart of the BCH/USD pair (data feed from Kraken).The pair may slowly recover towards the $440 and $442 levels in the near term.
Bitcoin cash price is consolidating above $430 against the US Dollar. BCH/USD could recover if buyers gain momentum above the $438 level.
Bitcoin Cash Price Analysis
There were a couple of tests of the $430-432 support by Bitcoin cash price against the US Dollar. The BCH/USD pair remained supported above $430 and it recently formed a base for an upward move. The price started a short term recovery and moved above the $435 level. There was a break above the 23.6% Fib retracement level of the last decline from the $441 high to $432 low.
Moreover, there was a break above a key bearish trend line with resistance at $434 on the hourly chart of the BCH/USD pair. The pair spiked towards the $440 level and the 100 hourly simple moving average where sellers appeared. Besides, the price faced sellers near the 50% Fib retracement level of the last decline from the $441 high to $432 low. The price is currently correcting lower towards the $435 and $432 supports. As long as the price is above the $430 level, it could slowly move higher in the near term.
Looking at the chart, BCH price is forming a decent support above $430. However, buyers need to gain momentum above the $438 and $440 resistances to take the price higher. The next major hurdle for a recovery awaits near the $450 zone.
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 placed well above the 50 level.
Major Support Level – $434
Major Resistance Level – $440