- Bitcoin cash price started a strong increase above the $400 resistance against the US Dollar.
- The price surged towards the $500 resistance and settled well above the 55 simple moving average (4-hours).
- There is a key rising channel forming with support near $420 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could start a fresh increase as long as it is above the $420 and $400 levels in the near term.
Bitcoin cash price started a strong increase above $400 against the US Dollar, similar to bitcoin. BCH/USD is correcting gains from $485, but dips are likely to be limited.
Bitcoin Cash Price Analysis
After forming a support base near the $320 level, bitcoin cash price started a strong increase. BCH price broke many hurdles near $300 and $320 to move into a positive zone.
The upward move gained pace above the $420 level and the 55 simple moving average (4-hours). The price even surged above the $450 level. It traded close to the $490 level and a new multi-month high was formed near $486.
Recently, there was a downside correction below the $450 and $430 support levels. The price even spiked below the $420 support, but the bulls protected the $400 zone. A low is formed near $401 and the price is currently showing a lot of positive signs.
There was a close above the $420 level. The price surpassed the 23.6% Fib retracement level of the recent decline from the $486 high to $401 low.
There is also a key rising channel forming with support near $420 on the 4-hours chart of the BCH/USD pair. An initial resistance on the upside is near the $440 level. The 50% Fib retracement level of the recent decline from the $486 high to $401 low is also near the $442 level to act as a resistance.
A clear break above the $440 and $442 levels could open the doors for a fresh increase. The next major hurdle is at $450, above which the price could revisit the $450 level.
On the downside, the price is likely to remain stable above $420. The main support is still near the $400 level. Any more losses could put a lot of pressure on the bears and the price might test $365.
Looking at the chart, bitcoin cash price is clearly holding gains above $400 and the 55 SMA (H4). Overall, the price start a fresh increase as long as it is above the $420 and $400 levels in the near term.
Technical indicators
4 hours MACD – The MACD for BCH/USD is slowly losing pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently close to the 50 level.
Key Support Levels – $420 and $400.
Key Resistance Levels – $440 and $480.
