32.5 C
Dubai
Friday, May 24, 2024
HomeAltcoin NewsBitcoin Cash Analysis: Bulls Protecting Key Support at $510

Bitcoin Cash Analysis: Bulls Protecting Key Support at $510

Date:

Related stories

  • Bitcoin cash price declined from well above $550 and tested $500 against the US Dollar.
  • The price is now trading well below the $550 level and the 55 simple moving average (4-hours).
  • There is a major bullish trend line forming with support near $520 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair is likely to start a fresh increase if there is a break above $545 and $550.

Bitcoin cash price is likely preparing for a fresh increase above $550 against the US Dollar, while bitcoin is correcting lower. BCH/USD could rally to $600 if there is a close above $550.

Bitcoin Cash Price Analysis

After testing the $600 resistance zone, bitcoin cash price started a fresh decline. BCH price broke the $580 and $550 support levels to move into a bearish zone.

The decline gained pace below the $550 level and the 55 simple moving average (4-hours). It even spiked to trade near the $500 support zone. A low is formed near $502 and the price is currently correcting higher. It traded above the $520 resistance level.

There was a break above the 23.6% Fib retracement level of the downward move from the $609 high to $502 low. However, the price is now struggling to clear the $545 resistance and the 55 simple moving average (4-hours). The main resistance is near the $550 and $555 levels.

The 50% Fib retracement level of the downward move from the $609 high to $502 low is also near $555. Therefore, the pair is likely to start a fresh increase if there is a break above $550 and $555.

On the downside, the $520 level is a decent support. There is also a major bullish trend line forming with support near $520 on the 4-hours chart of the BCH/USD pair. If there is a downside break below the trend line and $510, there are chances of a sharp decline. The next major support sits near the $480 level.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearly trading well below the $550 level and the 55 simple moving average (4-hours). Overall, the price is likely to start a fresh increase if there is a break above $545 and $550 in the near term.

Technical indicators

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

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

Key Support Levels – $520 and $510.

Key Resistance Levels – $550 and $555.

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

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories