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
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Source: NewsBTC
Charts courtesy of Trading View