Bitcoin Cash Analysis: More Upsides Possible If it Clears $305
- Bitcoin cash price corrected lower, but it stayed above the $280 support against the US Dollar.
- The price is currently recovering, and trading above the $295 level and the 55 simple moving average (4-hours).
- There is a key bullish trend line forming with support near $288 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair must break the $305 and $310 resistance levels for a fresh increase in the near term.
Bitcoin cash price is slowly moving higher towards $300 against the US Dollar. BCH/USD is likely to start a fresh increase once it gains pace above the $310 resistance.
Bitcoin Cash Price Analysis
Earlier this week, bitcoin cash price started a downside correction below the $320 level against the US Dollar. BCH price even traded below the $300 support and the 55 simple moving average (4-hours).
However, the price found support near the $280 zone. A low is formed near $281 and the price is currently rising. It broke the $285 and $295 resistance levels. There was a break above the 23.6% Fib retracement level of the downward correction from the $326 high to $281 low.
The price is currently testing the $300 resistance zone. The first major resistance is near the $305 level. The 50% Fib retracement level of the downward correction from the $326 high to $281 low is also near the $303 level to act as a resistance.
The main hurdle is near the $310 level, above which the price is likely to start a strong increase. In the mentioned case, the price could easily climb towards the $326 and $330 resistance levels.
Conversely, the price may perhaps decline from the $305 resistance. On the downside, the first key support is near the $288 level. There is also a key bullish trend line forming with support near $288 on the 4-hours chart of the BCH/USD pair.
If there is a downside break below the trend line support, the price could revisit the $280 support. Any further losses may perhaps call for a push towards the $270 support.
Looking at the chart, bitcoin cash price is clearly recovering higher above $295. However, the price must break the $305 and $310 resistance levels for a fresh increase in the near term.
4 hours MACD – The MACD for BCH/USD is currently gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently near the 50 level.
Key Support Levels – $288 and $280.
Key Resistance Levels – $305 and $310.