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Bitcoin Cash Price Weekly Analysis – BCH/USD Reaching Breakout

Key Points

  • Bitcoin cash price corrected lower, but remains supported above $1200 against the US Dollar.
  • There is a major contracting triangle forming with resistance at $1480 on the 4-hours chart of BCH/USD (data feed from Kraken).
  • The pair might soon break the triangle resistance and trade above $1500 in the near term.

Bitcoin cash price is in an uptrend above $1200 against the US Dollar. BCH/USD might soon break $1500 for more gains toward $1800.

Bitcoin Cash Price Resistance

There was a slow and steady decline in bitcoin cash price from the $1780 swing low against the US Dollar. The price declined below the $1400 and $1300 support levels. However, the downside move found support near $1200 and later the price started moving higher. It has moved above the 38.2% Fib retracement level of the last decline from the $1780 high to $1203 low.

The current price action is positive and it seems like there is a major contracting triangle forming with resistance at $1480 on the 4-hours chart of BCH/USD. The triangle resistance is near the 50% Fib retracement level of the last decline from the $1780 high to $1203 low. Therefore, it would be interesting to see whether the price can break the $1450-1500 resistance or not. Should there be a break and close above $1450, the price could move further higher towards the $1700 and $1800 levels.

On the downside, an initial support is around the $1400 level and the 100 simple moving average (4-hours). Below the mentioned $1400, there is a crucial support around $1350 and the triangle. However, the most important trend support is close to the $1200 level in the near term.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is slowly moving back in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level and is moving higher.

Major Support Level – $1350

Major Resistance Level – $1500

 

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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