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HomeAltcoin NewsBitcoin Cash Analysis: BCH Turned Buy On Dips, Likely To Break $425

Bitcoin Cash Analysis: BCH Turned Buy On Dips, Likely To Break $425

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  • Bitcoin cash price found support near the $365 level and recently recovered against the US Dollar.
  • The price gained strength above the $390 and $400 resistance levels to move into a positive zone.
  • There was a break above two bearish trend lines with resistance at $390 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair remains well supported on the downside near the $400 and $390 levels.

Bitcoin cash price rebounded nicely above $390 and $400 against the US Dollar. BCH is currently struggling near $425, but it is likely to gain pace in the coming sessions towards $450.

Bitcoin Cash Price Analysis

After a couple of swing moves, bitcoin cash price found support near the $365 and $370 levels against the US Dollar. The BCH/USD pair formed a swing low at $363.5 and recently started a steady rise. The last low was near $368.7 before the price climbed above the $375 and $380 resistance levels.

During the rise, the price broke the 23.6% Fib retracement level of the last decline from the $482 high to $363 swing low. Moreover, there was a break above two bearish trend lines with resistance at $390 on the 4-hours chart of the BCH/USD pair. The pair is now trading well above the $400 level and the 55 simple moving average (4-hours).

However, the upward move was capped by the $422 level. Moreover, the 50% Fib retracement level of the last decline from the $482 high to $363 swing low seems to be acting as a resistance. At the moment, the price is correcting lower and trading near the $410 level. The main support is near the $400 level and the 55 simple moving average (4-hours).

If there is a downside break below $400, the price could accelerate decline towards the $380 level. On the upside, a break above the $425 level is needed for more upsides in the near term. The next key resistance is near $450, above which the price is likely to accelerate towards the $475 level.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, bitcoin cash price is clearly trading in a positive zone above $400 and 55 simple moving average (4-hours). As long as the price is above $400, it is likely to break the $425 and $430 resistance levels. On the downside, below $400, the price may perhaps struggle to clear the $380 support.

Technical indicators

4 hours MACD – The MACD for BCH/USD is slowly reducing its bullish slope.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently correcting lower towards the 55 level.

Key Support Levels – $400 and $380.

Key Resistance Levels – $425 and $450.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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