- Bitcoin cash price declined recently below the $424 and $400 support levels against the US Dollar.
- The price is currently recovering above the $370 level after testing $350.
- There is a key declining channel forming with resistance near $390 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could start a fresh increase if it breaks the $390 and $400 resistance levels.
Bitcoin cash price is showing signs of a decent recovery from $350 against the US Dollar. BCH/USD must surge above the $400-$410 area to climb back towards the $450 level.
Bitcoin Cash Price Analysis
This week, bitcoin cash price started a strong decline below the $424 support area against the US Dollar. BCH price even broke the $400 support and settled below the 55 simple moving average (4-hours).
Finally, the price declined below the $370 support and tested the $350 support area. A swing low is formed near the $351 level and the price is currently rising. It recovered above the $365 and $370 levels.
Moreover, there was a break above the 23.6% Fib retracement level of the downward move from the $429 high to $351 low. An initial resistance on the upside is near the $390 level.
Besides, there is a key declining channel forming with resistance near $390 on the 4-hours chart of the BCH/USD pair. The channel resistance is near the 50% Fib retracement level of the downward move from the $429 high to $351 low.
Therefore, a clear break above the $390 level might open the doors for a larger recovery above the $400 resistance area. The next major hurdle for the bulls is near the $424 level (the recent breakdown zone).
If bitcoin cash climbs above the $424 level and the 55 simple moving average (4-hours), it could continue to rise towards the $450 and $470 resistance levels in the near term.
Conversely, the price could struggle to continue above the $390 and $400 resistance levels. In this case, the price could extend its decline below the $350 support area.
Looking at the chart, bitcoin cash price is showing signs of a decent recovery above the $370 level. Having said that, the price must surpass the $390 and $400 resistance levels to start a fresh rally towards the $450 resistance level in the near term.
Technical indicators
4 hours MACD – The MACD for BCH/USD is currently losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is correcting high towards the 45 level.
Key Support Levels – $360 and $350.
Key Resistance Levels – $390 and $400.