Bitcoin Cash Price Weekly Analysis: BCH/USD Could Extend Gains Above $500
- Bitcoin cash price rallied recently and broke the $450 and $460 resistances against the US Dollar.
- There was a break above a major bearish trend line with resistance at $430 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair may correct lower in the short term before buyers push the price above the $500 handle.
Bitcoin cash price is back in a positive zone above $460 against the US Dollar. BCH/USD is likely to extend gains above the $500 level in the near term.
Bitcoin Cash Price Analysis
This past week, there was a strong buying interest noticed around the $410 level in bitcoin cash price against the US Dollar. The BCH/USD pair started an upward move and broke a few important resistances near $420 and $430. It started a solid rally and even broke the $440 resistance and the 100 simple moving average (4-hours). Moreover, there was a break above the $450 resistance and the $460 pivot level.
More importantly, there was a break above a major bearish trend line with resistance at $430 on the 4-hours chart of the BCH/USD pair. It opened the doors for more gains and the price traded above the $482 swing high. The price is currently testing the 1.236 Fib extension level of the recent decline from the $482 high to $407 low. The current price action is very positive and it seems like the price may extend gains above $500. The next resistance could be $530 and the 1.618 Fib extension level of the recent decline from the $482 high to $407 low.
Looking at the chart, BCH price may perhaps correct a few points towards the $480 or $460 support levels. However, dips remain supported for more gains above $500.
Looking at the technical indicators:
-hours MACD – The MACD for BCH/USD is back in the bullish zone.4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the overbought levels.Major Support Level – $480Major Resistance Level – $500