Bitcoin cash price started a short-term correction above $500 against the US Dollar. BCH/USD could trade higher, but it is likely to face sellers near $550.
Bitcoin Cash Price ResistanceRecently, we saw a nasty decline in bitcoin cash price below the $500 support level against the US Dollar. The BCH/USD pair traded towards the $470 level and formed a low near $472. Later, a short-term recovery wave was initiated and the price moved above the $480 and $490 resistance levels. It also broke the 23.6% Fib retracement level of the last decline from the $593 high to $472 low.
Moreover, there was a break above a short-term contracting triangle with resistance at $490 on the hourly chart of the BCH/USD pair. The price is currently trading above the $500 resistance, but it is approaching a few important resistances near $550. An initial resistance is the 50% Fib retracement level of the last decline from the $593 high to $472 low at $532. Above this, the last support at $550 is likely to act as a resistance. Finally, the 100 hourly simple moving average is positioned near the $550 level to prevent gains. Therefore, it won’t be easy for BCH buyers to clear the $540-550 resistance zone.
Looking at the chart, BCH price is showing a few positive signs above $500. However, there are many hurdles on the upside near $550 to stop the current correction.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has moved back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level.
Major Support Level – $500
Major Resistance Level – $550
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