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Key Points

  • Bitcoin cash price extended gains above the $550 resistance and traded towards $600 against the US Dollar.
  • There was a break above a bullish pennant pattern with resistance at $522 on the hourly chart of the BCH/USD pair (data feed from Kraken).
  • The pair traded as high as $592 and it is currently correcting lower towards key supports.

Bitcoin cash price is placed nicely above the $540 support against the US Dollar. BCH/USD remains supported on dips near the $540 and $525 levels.

Bitcoin Cash Price Analysis

There was an increase in buying interest for bitcoin cash price above the $520 level against the US Dollar. The BCH/USD pair completed a downside correction yesterday at $510. Later, the pair gained traction and made a nice upside move above the $525 and $540 levels. The price action was such that buyers gained control above the $540 level and the price gained substantially.

During the rise, there was a break above a bullish pennant pattern with resistance at $522 on the hourly chart of the BCH/USD pair. The pair broke the $580 resistance and traded close to the $600 level. A new weekly high was formed at $592 before the price corrected lower. It moved down below the 23.6% Fib retracement level of the last wave from the $503 low to $592 high. On the downside, there are many supports above the $540 level. An immediate support is at $550. Below this, the 50% Fib retracement level of the last wave from the $503 low to $592 high is at $547.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, BCH price is trading in an uptrend above the $540 level. On the upside, a break above $590 and $600 could accelerate gains in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slightly in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well above the 50 level.

Major Support Level – $540

Major Resistance Level – $590

The post Bitcoin Cash Price Analysis: BCH/USD Dips Remain Supported Above $540 appeared first on NewsBTC.

 


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