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Bitcoin Cash Analysis: Bulls Continue To Protect Key Support

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  • Bitcoin cash is eyeing a fresh increase above the $650 resistance against the US Dollar.
  • The price is now trading below the $640 zone and the 55 simple moving average (4 hours).
  • There is a key contracting triangle forming with resistance at $655 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair must clear $650 and $655 to start a fresh increase in the near term.

Bitcoin cash price is consolidating gains above $600 against the US Dollar, unlike Bitcoin. BCH/USD could start a fresh surge if it clears the $655 level.

Bitcoin Cash Price Analysis

Bitcoin cash price started a pullback from the $720 zone. BCH traded below the $700 and $650 support levels to enter a short-term bearish zone.

A low was formed near $596 before the price found support. The price is now consolidating losses and attempting a fresh increase. There was a move above the $605 level, but the price is still below the 23.6% Fib retracement level of the downward move from the $719 swing high to the $596 low.

Bitcoin cash is now trading below the $650 zone and the 55 simple moving average (4 hours). On the upside, the price is facing resistance near the $625 level.

The first key resistance is near $650 or the 50% Fib retracement level of the downward move from the $719 swing high to the $596 low. There is also a key contracting triangle forming with resistance at $655 on the 4-hour chart of the BCH/USD pair.

The next major resistance is near $670, above which the price may perhaps gain bullish momentum. The next major resistance is near the $700 level. Any more gains above $700 could set the pace for a move toward the $720 level or even $750.

If not, the price might start another decline. Immediate support on the downside is near the $600 level. The first major support sits near the $565 level. The next major support is near $500 below which the bears might aim for $450.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin Cash’s price is now trading below the $650 zone and the 55 simple moving average (4 hours). Overall, the price must clear $650 and $655 to start a fresh increase in the near term.

Technical indicators

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

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

Key Support Levels – $600 and $565.

Key Resistance Levels – $625 and $650.

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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