Key Points
- Bitcoin cash price found support near the $420 level and later recovered against the US Dollar.
- There is a key bearish trend line formed with resistance at $470 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to face a lot of selling interest near the $470 and $500 levels in the near term.
Bitcoin cash price is under pressure below $500 against the US Dollar. BCH/USD remains sell on rallies near the $470 and $480 levels.
Bitcoin Cash Price Analysis
This past week, we saw a major downside move below the $520 and $500 supports in bitcoin cash price against the US Dollar. The BCH/USD pair declined heavily and broke the $450 support. There was also a close below the $450 level and the 100 simple moving average (4-hours). It traded close to the $400-410 support area and formed a low at $421. Later, the price started an upside correction and moved above the $430 level.
At present, the price is testing the 23.6% Fib retracement level of the last decline from the $531 high to $421 low. If there is a break above the $450 and $455 resistance levels, the price may climb towards the next important hurdle at $470-475. There is also a key bearish trend line formed with resistance at $470 on the 4-hours chart of the BCH/USD pair. Moreover, the 50% Fib retracement level of the last decline from the $531 high to $421 low is also positioned near the $476 level. Therefore, sellers are likely to appear near $470-475 if the price continues to climb higher.
Looking at the chart, BCH price may perhaps hold the $400 support area for some time and it could correct towards $470-475.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slightly in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is recovering above the 30 level.
Major Support Level – $420
Major Resistance Level – $470