• Bitcoin cash is attempting a recovery wave above the $112 resistance against the US Dollar.
• There is a key bearish trend line forming with resistance near $116 on the 4-hour chart of the BCH/USD pair.
• The pair must clear $116 and $118 to start a steady upward movement in the near term.
Bitcoin Cash Price Analysis
Bitcoin cash price formed a decent support base above the $110 level and started a decent increase, eventually clearing the $112 resistance zone. The price climbed above the 50% Fib retracement level of its downward move from the $117.30 swing high to the $111.60 low, and is now trading above the $114 zone and 55 simple moving average (4 hours). On the upside, there is a key bearish trend line forming with resistance near $116 on the 4-hour chart of BCH/USD pair, which must be cleared for any further gains above this level.
Resistance Levels
The next major resistance lies at around$118, which if broken could open up possibilities for further surge towards$120 level. Above this, bulls may targetthe 126level.
Support Levels
Immediate support on downside lies at around$113 followed by$112 as first major support . If these levels are breached then next major support lies at around$110 belowwhich bears might aim for$102 and then even lower towards 100level.
Technical Indicators
4 hours MACD – The MACD for BCH/USD is gaining pace in bullishzone. 4hours RSI (Relative Strength Index) – The RSI for BCH/USD is currentlyabove 50level indicating bullish momentum in shortterm.
Conclusion
Overall Bitcoin Cash’s price needs to pass through two key resistances at$116 & 118to continue higher movement inthe near future