Bitcoin cash price retested the $780 support zone and bounced back against the US Dollar.There is a key bullish trend line formed with support at $800 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).The pair is placed nicely in an uptrend and it is likely to extend gains above $840-850 in the near term.
Bitcoin cash price trading with a positive bias above $780 against the US Dollar. BCH/USD dips remain supported for more gains above the $850 level.
Bitcoin Cash Price Support
After trading above the $850 level, there was a dip in Bitcoin cash price against the US Dollar. The BCH/USD pair declined below the $820 and $800 levels. However, the downside move was protected by the $780 support area. Moreover, the 100 simple moving average (4-hours) also acted as a crucial support for buyers around $780. It seems like there is a strong base formed near the $770-780 levels.
More importantly, a key bullish trend line with current support at $800 also stopped declines on the 4-hours chart of the BCH/USD pair. The pair bounced back and moved above the 50% Fib retracement level of the last drop from the $879 high to $778 low. The current price action is positive and suggests more gains above $840 in the near term. Buyers need to push the price above the 61.8% Fib retracement level of the last drop from the $879 high to $778 low at $840. Above this, the price could move towards the last swing high at $885-880.
Looking at the chart, the price is well supported on the downside above $780. As long as the price is above $780 and the 100 SMA, it may perhaps continue to move higher.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slowly moving back in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Major Support Level – $780
Major Resistance Level – $840