Bitcoin Cash Analysis: BCHUSD Might Face Strong Resistance Near $640

November 07, 2018 | AtoZ Markets

The price of Bitcoin cash surged more than 11% today, advancing its price to a new two-month high. The price of the coin has jumped over 30% since Sunday and is currently trading near $630 levels.

Bitcoin cash is the fourth-largest cryptocurrency by market capitalization, data shows. The coin has a market cap of 10.9 Billion. 

Bitcoin Cash Price Technical Analysis

This morning, BCHUSD pair initiated a fresh upward move and traded above the $580 and $600 resistance levels. A new monthly high was formed at $629 before the price started to move downwards. However, the price is still trading extensively above the $550 support and the 100 hourly SMA.

Also, on the weekly charts, the 100 SMA line is above the 200 SMA which indicate the path of least resistance is towards the upside direction. As follows, an upward rally towards the resistance could be likely possible. 

On the downside, an initial support is near the 23.6% Fibonacci retracement level of the recent upside from the $541 low to $629 high. Moreover, there is a major bullish trend line formed with support at $580 on the hourly chart of the BCHUSD pair. The trend line support is near the 50% Fibonacci retracement level of the recent upside from the $541 low to $629 high. Therefore, if the price declines from the current levels, it could obtain a strong support near the $580 zone. Below this zone, the price may revisit the key $550 support levels.

Looking at the chart, BCH price is placed in an uptrend above the $550 support. Dips from the current levels remain supported near $580 and $575. On the upside, the price of Bitcoin Cash might test $670-$680 levels if there is a break above $640 mark.

  • The Relative Strength Index placed at period 14 is valued at 77.60 which signals "Overbought" in Daily time-frame.
  • The William%R signals the overbought action on daily charts.
  • MACD(12,26) – Buy signal in daily charts.
  • ATR(14) signals that Bitcoin Cash is highly volatile.

Bitcoin Cash Pivot Point

Bitcoin Cash price is sustaining a strong daily support near $580 and resistance near $660 levels.

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