• 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 price 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. BCH started a decent increase and was able to clear the $112 resistance zone. The price climbed above the $114 resistance level and there was a move above the 50% Fib retracement level of the downward move from the $117.30 swing high to the $111.60 low. It is now trading above the $114 zone and the 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. The trend line is near 76.4% Fib retracement level of downward move from swing high at 117.30 to low at 111.60, which needs to be cleared for further upside momentum in bitcoin cash price towards next major resistance at 118 levels in short term outlook .
Immediate support on downside for bitcoin cash price is found around 113 levels, with next major support found around 112 levels while 110 could act as strong support if bears take control over bulls again in short term outlooks .
The MACD for BCH/USD is gaining pace in bullish zone and RSI for BCH/USD is also above 50 level which indicates that bulls are currently dominating over bears .
Bitcoin Cash’s price must clear both its immediate resistances at 116 and 118 levels to have any chance of starting an upwards movement in near future . Immediate supports are placed at 113, 112 and 110 respectively .