Bitcoin Cash Price Weekly Analysis – BCH/USD Reached Major Resistance

Key Points

  • Bitcoin cash price made a nice upside move above $1200 against the US Dollar.
  • There is a major connecting resistance trend line forming with barrier at $1720 on the 4-hours chart of BCH/USD (data feed from Kraken).
  • On the downside, there is a key support forming near $1250 and the 100 simple moving average (4-hour).

Bitcoin cash price is climbing higher above $1500 against the US Dollar. BCH/USD is currently facing an important resistance near $1720-1750.

Bitcoin Cash Price Resistance

There was a nice recovery initiated in bitcoin cash price from the $850 swing low against the US Dollar. The price popped higher and managed to move above the $1000 and $1200 resistances. There was also a break above the 38.2% Fib retracement level of the last drop from the $2600 high to $848 low. It opened the gates for more gains above $1500 in the near term.

There was a move above the $1650 level, but the price found a major resistance near $1720-1750. There is a major connecting resistance trend line forming with barrier at $1720 on the 4-hours chart of BCH/USD. The trend line resistance is near the 50% Fib retracement level of the last drop from the $2600 high to $848 low. Therefore, the $1750 level is a monster resistance and it won’t be easy for buyers to break it.

On the downside, there is a bullish trend line forming with support near $1300-1250. The mentioned $1250 support is also close to the 100 simple moving average (4-hour). Therefore, the $1300-1250 levels are important buy zones in the near term. We might see ranging moves below $1750 for some time before the price makes the next move.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is currently in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving lower towards the 50 level.

Major Support Level – $1300

Major Resistance Level – $1750

 

Charts courtesy – Trading View, Kraken

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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