07 Jan Bitcoin Cash Price Weekly Analysis – Can BCH/USD Break This?
- Bitcoin cash price is struggling to move above the $2600 and $2700 resistance levels against the US Dollar.
- There is a crucial bearish trend line forming with resistance at $2600 on the 4-hours chart of BCH/USD (data feed from Kraken).
- The pair has to move above the $2600 and $2700 levels to gain traction in the near term.
Bitcoin cash price is finding bids above the $2200 level against the US Dollar. BCH/USD must close above $2700 to move back in the bullish zone.
Bitcoin Cash Price Upside Hurdle
After a sharp downside move toward $2000, bitcoin cash price found support against the US Dollar. The price started a recovery and managed to settle above $2200. There were a couple of upside attempts, but it struggled to move above $2800 and then at $2700. It seems like there is a crucial bearish trend line forming with resistance at $2600 on the 4-hours chart of BCH/USD.
The mentioned trend line is acting as a major upside hurdle and prevented gains above $2700. The trend line at $2600-2700 is also around the 100 simple moving average on the same chart. Therefore, a break above $2700 and the 100 SMA won’t be easy. The pair is currently above the 50% Fib retracement level of the last drop from the $2880 high to $2281 low.
However, it has to move above $2700 and the 61.8% Fib retracement level of the last drop from the $2880 high to $2281 low to gain upside momentum. Once there is a close above the $2700 resistance and the 100 SMA, the price could accelerate toward $3000 and then $3200. On the downside, the $2200 and $2000 levels are important supports.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is mostly flat and is showing signs of a range.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Major Support Level – $2200
Major Resistance Level – $2700
Charts courtesy – Trading View, Kraken
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