- A break out of the short-term triangle resistance is imminent in the short-term.
- Moving average support will limit declines in case of a reversal, although the primary support lies at $440.
Bitcoin Cash is currently consolidating the gains following the surge that lifted the entire crypto market from the bear trend towards the end of last week. The virtual currency broke above $500 before coming to a sudden halt at the swing high.
A sharp correction followed as Bitcoin Cash retreated under $500 again. The price dived below the 61.8% Fib retracement level with the last swing high of $542.88 and a low of $434.37. Bitcoin Cash slowed down the bear correction slightly below $460 and supported by the bullish trendline.
A pullback occurred from the above support where Bitcoin Cash made a correction above the 61.8% Fib level but the upside has been limited by the 50% Fib level, which is coinciding with the triangle resistance at $480. A break out of the short-term triangle resistance is imminent in the short-term. Besides, this break has the potential to test and break the key hurdle at $500.
Technical indicators on the chart of BCH/USD are positive at the time of press. The RSI is ranging marginally above the 50 percent mark. This means that Bitcoin Cash likely direction of movement is upwards sideways in the near-term. Moreover, the DMI on the same chart is ranging at 50% to show that the trend will continue in the current range.
Several support areas have been established on the hourly chart; the initial support lies at the 61.8% Fib (slightly below $470) while both the hourly 50SMA and 100SMA currently at $463.09 and $456.22 respectively will offer support too. However, the primary support rests at $440.
BCH/USD 1-hour chart
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