Bitcoin Cash Price Technical Analysis: Temporary Jump Reverses

Bitcoin cash price recent spike looks like a false move against the US Dollar. BCH/USD is once again moving higher, but faces resistance near $375.

The Status:

Bitcoin cash price recently surged above the $400 level against the US Dollar, but quickly reversed gains.

There was a break below a bullish trend line with support at $330 on the hourly chart of BCH/USD (data feed from Kraken).

The price may move higher once again, but faces many resistances such as $350 and $375.

Technical Aspect

After a brief consolidation around the $240-250 levels, Bitcoin cash price moved higher against the US Dollar. The price surged higher sharply and broke the $375 resistance. It even moved above the $400 handle and traded as high as $439.28. However, buyers lost momentum, and all gains were quickly reversed. The price moved down and broke the $375 support area to trim all gains.

During the downside move, there was a break below a bullish trend line with support at $330 on the hourly chart of BCH/USD. There was also a break below the 50% Fib retracement level of the last wave from the $241 low to $439 high. Having said that, the 100 hourly simple moving average is currently protecting losses near $300. Moreover, the 61.8% Fib retracement level of the last wave from the $241 low to $439 high is also preventing declines.

BCH is once again moving higher and trading above $300. It seems like the price may attempt a retest of $375 in the near term. However, upsides seem to be limited by $375 and $400 considering the recent false upside break.

Hourly MACD – The MACD for BCH/USD is now moving back from the bullish to bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is now back below the 50 level.

Major Support Level – $300

Major Resistance Level – $375

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. Altcoin Today does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Source: NewsBTC

Charts courtesy of Trading View