Bitcoin cash price rallied recently and moved above the $1,000 and $1,200 resistances against the US Dollar.
Yesterday’s highlighted major connecting bearish trend line with resistance at $990 was broken on the hourly chart of BCH/USD (data feed from SimpleFX).
The pair traded above the $1,300 level before starting a downside correction.
Bitcoin cash price rallied above the $1,200 resistance against the US Dollar. BCH/USD is currently correcting lower, but it remains supported on the downside.
Bitcoin Cash Price Rally
There were as a good bullish structure formed above $900 in bitcoin cash price yesterday against the US Dollar. The price started a sharp upside move and broke a few important resistances, starting with $985. More importantly, the price was able to move above the $1,000 resistance and settled above the 100 hourly simple moving average.
It opened the doors for more gains above the $1,100 level. During the upside move, yesterday’s highlighted major connecting bearish trend line with resistance at $990 was broken on the hourly chart of BCH/USD. The pair surged above the $1,200 resistance and it even climbed above $1,300. A high was formed near $1,344 from where the price started a downside correction. It has moved below the 23.6% Fib retracement level of the wave from the $934 low to $1,344 high.
However, there are many supports on the downside such as $1,120 and $1,000. The 50% Fib retracement level of the wave from the $934 low to $1,344 high is at $1,139 to prevent declines. Overall, if the price corrects lower further from the current levels, it is likely to find support at $1,120 and $1,000. On the upside, the price is facing hurdles near $1,300 and $1,340.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly reducing its bullish slope.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving lower towards the 50 level.
Major Support Level – $1,120
Major Resistance Level – $1,300