- Bitcoin cash price rallied above the $455 resistance before correcting lower against the US Dollar.
- The price traded towards the $482 level before starting a downside correction.
- There is a major ascending channel forming with support at $410 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair remains well supported on the downside and it could bounce back above $430 and $440.
Bitcoin cash price declined sharply from the $480-482 area against the US Dollar. BCH is currently holding an important support and the price is likely to bounce back above $440.
Bitcoin Cash Price Analysis
This week, bitcoin cash price remained in a positive zone and traded above the $440 and $450 levels against the US Dollar. The BCH/USD pair even rallied above the $460 level and settled above the 55 simple moving average (4-hours). Finally, there was a push above the $470 level and the price traded to a new monthly high at $482. Later, the bulls struggled, resulting in a sharp downside correction. The price declined heavily and broke the $470 and $465 support levels.
There was a break below the 23.6% Fib retracement level of the last wave from the $339 swing low to $482 high. Besides, there was a spike below the $420 level and the 55 simple moving average (4-hours). However, the 50% Fib retracement level of the last wave from the $339 swing low to $482 high acted as a strong support. There is also a crucial ascending channel forming with support at $410 on the 4-hours chart of the BCH/USD pair. Therefore, it won’t be easy for sellers to clear the $410 and $400 support levels. If there is a downside break, the price might test the $375 support area.
On the upside, there are many resistances near the $430 and $440 levels. If there is a fresh increase above $440, the price could continue higher towards the $450 and $460 levels. The next major hurdle for the bulls could be $480.
Looking at the chart, bitcoin cash price is clearly holding an important support are near the $410 level. As long as there is no close below $410 and $400, the price remains in an uptrend. In the short term, there could be range moves above $400 before the price starts an upward move. On the upside, the key targets could be $440 and $450.
Technical indicators
4 hours MACD – The MACD for BCH/USD is slowly reducing its bearish slope.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD declined sharply below the 50 level and it is currently flat near 40.
Key Support Levels – $410 and $400.
Key Resistance Levels – $440 and $450.