- Bitcoin cash price is holding the $1500 support area, but it is struggling to move above $1680-1700 against the US Dollar.
- There is a short-term contracting triangle forming with current resistance at $1680 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair has to move above the $1700 level and the 100 hourly simple moving average to gain momentum.
Bitcoin cash price is finding it hard to overcome selling pressure near 100 SMA against the US Dollar. BCH/USD could trade in a range before making the next move.
Bitcoin Cash Price Upside Barrier
During the past three sessions, there was no major moveabove $1680 in bitcoin cash price against the US Dollar. The price was seen trading in a range of $1500-$1680. On the upside, the $1680 and $1700 levels are acting as a major barrier for more gains. Moreover, the 100 hourly simple moving average is also at $1685 to prevent upsides in the short term.
The price recently traded as low as $1491 before starting a recovery. It moved higher and broke the 23.6% Fib retracement level of the last decline from the $2088 high to $1491 low. However, the price failed to gain momentumabove $1680 and the 100 hourly SMA. It has to break $1680-1700 area to gain traction. Moreover, the 38.2% Fib retracement level of the last decline from the $2088 high to $1491 low is also at $1719. Once there is a close above $1700, the price would easily move higher towards $1780.
The next major resistance is near the 50% Fib retracement level of the last decline from the $2088 high to $1491 low. At present, it seems like there is a short-term contracting triangle forming with current resistance at $1680 on the hourly chart of BCH/USD, which could provide us the next break.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is not showing any signs of an upside break.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well above the 50 level.
Major Support Level – $1500
Major Resistance Level – $1680
Charts courtesy – Trading View, Kraken