- Bitcoin Cash jumps over 4% on the day, but upside movement is capped at $550.
- The downside is well protected with support areas at $530, $520 and $500.
Bitcoin Cash price has increased in value over 4% on the day, however, the upside retracement has been capped at $550. The price has been recording higher lows and higher highs after the rebound below the critical support at $500. BCH/USD formed a low at $480 before embarking on the current uptrend.
The uptrend initiated on Wednesday remained range-bound between the upper limit at $540 and the lower limit at the 23.6% fib retracement level with the previous swing high of $594.0 and a low of $470.2 at $500. Bitcoin Cash is still trading within a contracting triangle with a potential for a breakout toward the key resistance at $560 and later the critical level at $580.
The trend is positive, but the stochastic has changed direction south to show that the bears are seeking entry. The 50% Fib level is working as the short-term support at $531.9. Other support zones include at $520 and $500 respectively. A support above the resistance range mentioned above is vital for the buyers as they curve a path towards $560. On the contrary, if the contracting triangle is broken, BCH/USD could break down and resume the downtrend canceling the gains towards the primary support at $500.
BCH/USD 1-hour chart
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