Bitcoin cash price traded higher and broke two important resistances at $530 and $540 against the US Dollar.Yesterday’s highlighted key bearish trend line was breached with resistance at $527 on the hourly chart of the BCH/USD pair (data feed from Kraken).The pair traded as high as $555 and it is currently correcting lower towards the $540 support.
Bitcoin cash price is gaining momentum above $540 against the US Dollar. BCH/USD may correct lower, but dips remain supported near $540 and $530.
Bitcoin Cash Price Supports
Yesterday, we discussed a possible break and decision time for Bitcoin cash price above $510 against the US Dollar. The BCH/USD pair gained traction, made a nice upside move above the $530 resistance, and climbed into a positive zone. There was also a close above the $530 level and the 100 hourly simple moving average. Additionally, there was a break above the last swing high at $545.
More importantly, yesterday’s highlighted key bearish trend line was breached with resistance at $527 on the hourly chart of the BCH/USD pair. The pair spiked above the $550 level and formed a high near $555. Later, the price started a downside correction and traded below $550. There was a break below the 23.6% Fib retracement level of the last wave from the $515 low to $555 high. However, there are many support levels on the downside near $540 and $530. An intermediate support is $535 and the 50% Fib retracement level of the last wave from the $515 low to $555 high.
Looking at the chart, BCH price may correct a few points in the short term towards $540 or $535. However, dips are likely to find strong bids for a bounce back above $550.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is now in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is correcting lower towards the 60 level.
Major Support Level – $535
Major Resistance Level – $555