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HomeAltcoin NewsBitcoin Cash Analysis: Facing Key Breakout Resistance At $620

Bitcoin Cash Analysis: Facing Key Breakout Resistance At $620

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  • Bitcoin cash price is struggling to recover above $600 and $620 against the US Dollar.
  • The price is now trading below $600 and the 55 simple moving average (4-hours).
  • There is a key bearish trend line forming with resistance near $620 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could extend its decline unless there is a clear break above $600 and $620.

Bitcoin cash price is struggling to recover above $620 against the US Dollar, similar to bitcoin. BCH/USD remains at a risk of more downsides below $560.

Bitcoin Cash Price Analysis

After struggling above $700, bitcoin cash price started a fresh decline. BCH broke the $620 support level and the 55 simple moving average (4-hours) to move into a bearish zone.

There was also a break below the $600 level. The price traded as low as $545 and it recently started an upside correction. There was a break above the $580 level. The price traded above the 23.6% Fib retracement level of the key drop from the $735 high to $545 low.

The price even climbed above the $620 level. However, it failed to clear the $640 resistance level. It seems like the price was rejected near the 50% Fib retracement level of the key drop from the $735 high to $545 low.

There is also a key bearish trend line forming with resistance near $620 on the 4-hours chart of the BCH/USD pair. The pair is now trading below $600 and the 55 simple moving average (4-hours). If the price continues to stay below $600, there is a risk of more losses.

An initial support on the downside is near the $575 level. The next major support is near the $550 level, below which bitcoin cash price could dive towards the $510 level. Conversely, a clear break above $620 is must to start a steady increase. The next key resistance is near $650.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearly trading below $600 and the 55 simple moving average (4-hours). Overall, the price is could extend its decline unless there is a clear break above $600 and $620.

Technical indicators

4 hours MACD – The MACD for BCH/USD is now 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 – $550 and $500.

Key Resistance Levels – $600 and $620.

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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