37.8 C
Dubai
Thursday, May 30, 2024
HomeAltcoin NewsBitcoin Cash Analysis: Bears Gain Strength Below $550

Bitcoin Cash Analysis: Bears Gain Strength Below $550

Date:

Related stories

  • Bitcoin cash price started a fresh decline from the $570 zone against the US Dollar.
  • The price is now trading below the $550 zone and the 55 simple moving average (4 hours).
  • There is a key bearish trend line forming with resistance near $505 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could continue to move down if it stays below the $525 resistance zone.

Bitcoin cash price is struggling below the $550 zone against the US Dollar, like Bitcoin. BCH/USD could restart its decline if it fails near $525 or $540.

Bitcoin Cash Price Analysis

Bitcoin cash price struggled to continue higher above the $570 resistance zone. BCH formed a short-term top near $570 before it started a fresh decline. There was a drop below the $550 and $540 support levels.

It even declined below the $500 support level. The price tested the $445 support. A low was formed near the $444.49 level and the price is now consolidating losses. Bitcoin cash is now trading below the $540 zone and the 55 simple moving average (4 hours).

If there is a fresh increase, it could face resistance near the $475 level. It is close to the 23.6% Fib retracement level of the downward move from the $569 swing high to the $444 low.

There is also a key bearish trend line forming with resistance near $505 on the 4-hour chart of the BCH/USD pair. It is close to the 50% Fib retracement level of the downward move from the $569 swing high to the $444 low. The next major resistance is near the $525 level.

Any more gains above $525 could set the pace for a move toward the $540 level. If there is a move above the $540 resistance, the price could rise toward the $570 zone. If not, the price might continue lower below $450.

Immediate support on the downside is near the $445 zone. The next major support is near the $422 level, below which the bears might aim for $405 or even $400.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin cash price is now trading below the $520 zone and the 55 simple moving average (4 hours). Overall, the price could start a fresh decline if it stays below the $525 resistance zone.

Technical indicators

4 hours MACD – The MACD for BCH/USD is gaining pace in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is below the 50 level.

Key Support Levels – $445 and $420.

Key Resistance Levels – $505 and $525.

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.

Subscribe

Latest stories