HomeAltcoin NewsBitcoin Cash Analysis: Bulls Could Fail Near $500

Bitcoin Cash Analysis: Bulls Could Fail Near $500

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  • Bitcoin cash price started a fresh decline from $585 against the US Dollar.
  • The price is now trading below the $500 zone and the 55 simple moving average (4-hours).
  • There is a major bearish trend line forming with resistance near $500 the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair must gain pace above $500 for a fresh increase in the near term.

Bitcoin cash price is showing bearish signs below $500 against the US Dollar, similar to bitcoin. BCH/USD could resume its decline unless it surges above $500.

Bitcoin Cash Price Analysis

Bitcoin cash price started a major decline below the $550 support zone. BCH even broke the $500 support level and settled below the 55 simple moving average (4-hours).

There was also a spike below the $400 level. A low was formed near $365 and the price is now correcting higher. There was a break above the 50% Fib retracement level of the downward move from the $587 swing high to $365 low.

An immediate hurdle on the upside is near the $495 level and the 55 simple moving average (4-hours). There is also a major bearish trend line forming with resistance near $500 the 4-hours chart of the BCH/USD pair.

The trend line is near the 61.8% Fib retracement level of the downward move from the $587 swing high to $365 low. A clear break above $490 and $500 might spark a fresh rally. In the stated case, the price could rise towards the $550 level.

An initial support is near the $440 level. The first major support is near the $430 level. A downside break below the $440 and $430 support levels might start a major decline.

The next major support is near the $400 level, below which the bears might aim a test of $365. Any more downsides might lead the price towards the $320 level.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is now trading below the $500 zone and the 55 simple moving average (4-hours). Overall, the price must gain pace above $500 for a fresh increase in the near term.

Technical indicators

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

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

Key Support Levels – $440 and $430.

Key Resistance Levels – $490 and $500.

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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