- Bitcoin cash price declined heavily from well above the $480 support area against the US Dollar.
- The price broke the $450 and $415 support levels to enter a bearish zone.
- There was a break below a crucial bullish trend line with support near $430 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently under pressure and it could continue to decline towards $360 in the near term.
Bitcoin cash price fell sharply below the $440 support area against the US Dollar. BCH remains at a risk of more losses unless it trades back above the $430 level.
Bitcoin Cash Price Analysis
After facing a strong resistance near the $517 and $529 levels, bitcoin cash price declined heavily against the US Dollar. The BCH/USD pair started a major decline after forming a double top near the $517 level. The bulls lost control and there were heavy losses below the $460, $450 and $$430 support levels. The price even broke the $415 support and the 55 simple moving average (4-hours).
Moreover, there was a break below a crucial bullish trend line with support near $430 on the 4-hours chart of the BCH/USD pair. The pair is now trading well below the $430 level and recently traded below $400. A swing low was formed near $384 and the price is currently correcting higher. However, the 23.6% Fib retracement level of the last decline from the $517 high to $384 swing low is acting as a resistance.
On the upside, there are many hurdles near the $430 and $440 levels. The 50% Fib retracement level of the last decline from the $517 high to $384 swing low is the main resistance near the $450 level. Therefore, if the price continues to correct higher, it could struggle to clear the $430 and $450 resistance levels. Besides, the 55 SMA is also near the $450 level to prevent gains.
On the downside, an immediate support is near the $384 low. If there are more losses, the price could continue to slide towards the $360 support area. The next main support is near the $350 level.
Looking at the chart, bitcoin cash price is clearly trading in a bearish zone below the $415 and $430 levels. There are high chances of more losses below $384 unless the price settles above the $430 pivot level in the near term.
4 hours MACD – The MACD for BCH/USD is currently gaining pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 40 and 35 levels.
Key Support Levels – $384 and $360.
Key Resistance Levels – $415 and $430.
Check out the original article here.
Author: Aayush Jindal