- Bitcoin cash price jumped higher and broke the $540 and $600 resistance levels against the US Dollar.
- There was a break above a major bearish trend line formed with resistance near $560 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair surged above the $600 and $620 levels, and now it could rally past $650.
Bitcoin cash price climbed higher sharply above $600 against the US Dollar. BCH/USD may correct lower, but dips remain supported for more gains above $650.
Bitcoin Cash Price Trend
After trading above the $500 level for quite some time, there was a sharp upside move in bitcoin cash price against the US Dollar. The BCH/USD pair rallied and broke many resistances on the way up like $540, $580, $600 and $640. More importantly, the price is now trading well above the $550 pivot level and the 100 simple moving average (4-hours).
During the rise, there was a break above a major bearish trend line formed with resistance near $560 on the 4-hours chart of the BCH/USD pair. The pair traded as high as $656 and it is currently placed nicely in a bullish trend. If it corrects lower from the current levels, the previous resistance near $620 could act as a support. The 23.6% Fib retracement level of the last wave from the $523 low to $656 high is also positioned near the $625 level. If the price continues to move down, the $600 level is the next support. It coincides with the 50% Fib retracement level of the last wave from the $523 low to $656 high.
Looking at the chart, BCH price remains in a solid uptrend above $600. There could be a minor dip, but buyers are likely to appear near $625 or $600.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is placed heavily in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is near the overbought levels.
Major Support Level – $600
Major Resistance Level – $650
Author: Aayush Jindal