- Bitcoin cash price started consolidating losses after trading as low as $485 against the US Dollar.
- There is a short-term ascending channel forming with resistance at $530 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair needs to surpass the $530 and $535 level to correct towards the $550 and $555 resistances.
Bitcoin cash price is holding the $500 support against the US Dollar. BCH/USD may trade above the $535 resistance to test the $555 resistance in the near term.
Bitcoin Cash Price Correction
Yesterday, we saw a sharp downside move in bitcoin cash price from well above the $600 level against the US Dollar. The BCH/USD pair even broke the $550 support and traded below $500 and the 100 hourly simple moving average. It traded as low as $485 and later started an upside correction. It slowly moved above the $500 level and the $505 resistance.
Recently, buyers were able to push the price above the $520 level. Moreover, there was a break above the 23.6% Fib retracement level of the last slide from the $533 swing high to $485 low. However, there are many resistances on the upside near the $530 and $535 levels. There is also a short-term ascending channel forming with resistance at $530 on the hourly chart of the BCH/USD pair. If there is a break above the channel resistance, the price could break the $535 resistance. Above $535, the next major hurdle is near the $550-555 zone. The 50% Fib retracement level of the last slide from the $533 swing high to $485 low is also at $559.
Looking at the chart, BCH price may correct higher in the short term, but upsides are likely to be capped by $535 or 555.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently above the 50 level.
Major Support Level – $500
Major Resistance Level – $530