Bitcoin cash price corrected lower after rallying towards $390.00. BCH tested the $330.00 support, bounced back, and it seems to be setting up for a larger upward move.
- Bitcoin cash price started a downside correction after trading as high as $388.00.
- BCH recently broke a contracting triangle with resistance at $361.00 on the 2-hours chart.
- The price is gaining momentum and it is likely to grind higher towards $380.00 or even $400.00.
Bitcoin Cash Price Analysis (BCH to USD)
This past week, bitcoin cash price was benefited from the sharp upward move in bitcoin above $7,000. BCH/USD surged above the $300.00 and $310.00 resistance levels to start a strong rally. The price climbed above the $340.00 and $360.00 resistance levels to trade to a new 2019 high.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair traded close to the $390.00 level and settled well above the 25 simple moving average (2-hours). A swing high was formed near $388.00 and recently the price corrected lower.
It declined below the $360.00 support level and the $350.00 pivot. The price tested the $330.00 level and later started trading in a broad range. A swing low was formed at $332.69 and recently the price climbed above the $350.00 level.
It pierced the 50% Fib retracement level of the last drop from the $381.76 high to $332.69 swing low. It opened the doors for more gains above the $360.00 level.
More importantly, there was a clear break above a contracting triangle with resistance at $361.00 on the same chart. The price is now trading above the 61.8% Fib retracement level of the last drop from the $381.76 high to $332.69 swing low.
These all are positive signs and suggests more gains above the $370.00 and $380.00 levels for investors. If the market sentiment remains in favor of the bulls and bitcoin price keeps rising, BCH could even surge above the $390.00 and $400.00 levels in the coming sessions.
On the downside, the main support is at $350.00 and the 25 simple moving average (2-hours), below which bitcoin cash price might test the $330.00 support again.
The market data is provided by TradingView, Coinbase.