Bitcoin Cash Price (BCH) Is Rising But Short Term Correction Possible
In the past few days, there were strong bullish moves in bitcoin cash price above $375.00. Recently, BCH to USD corrected lower, but dips remained well bid above the $376.00 and $370.00 support levels.
Key Takeaways: BCH/USD
- Bitcoin cash price is trading in a strong uptrend above $370.00 and $360.00 against the US Dollar.
- BCH/USD is following a nice bullish trend line with support near $380.00 on the 2-hours chart (data feed from Bitstamp).
- Bitcoin is also trading in a bullish zone above $9,250 and it could rally above $9,500.
Bitcoin Cash Price Analysis
This week, bitcoin cash price revisited the $400.00 resistance area. BCH price traded as high as $394.79 and recently corrected a few points. There was a downside break below the $388.00 and $385.00 levels.
Looking at the 2-hours chart, bitcoin cash even spiked below the $$375.00 support, but it remained well above the 50 simple moving average (2-hours, purple).
Moreover, there was a break below the 50% Fib retracement level of the upward move from $259.95 low to $294.79 high. However, the bulls protected the $370.00 level and the price bounced back.
It seems like the 76.4% Fib retracement level of the upward move from $259.95 low to $294.79 high provided a strong support. More importantly, bitcoin cash price is following a nice bullish trend line with support near $380.00 on the 2-hours chart.
If there is a downside break below the trend line support and $375.00, the price could start a larger downside correction. An immediate support is near the $370.00 level and the 50 simple moving average (2-hours, purple).
Any further downsides might lead the price towards the $350.00 support area in the near term. Conversely, the price might continue to rise above the $390.00 and $395.00 levels.
The main resistance for bitcoin cash price is near the $400.00 area, above which the bulls are likely to aim a test of the $425.00 area in the coming sessions. An intermediate resistance is near the $415.00 level.