- Bitcoin cash price declined heavily below the $360 and $350 support levels against the US Dollar.
- The price tested the $300 support area and it is currently correcting higher.
- There is a short term ascending channel forming with support near $318 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could continue to move down below the $315 and $300 support levels in the near term.
Bitcoin cash price is trading in a downtrend below $350 against the US Dollar. BCH/USD remains at a risk of more losses below $305 and $300 if it fails to recover above $350.
Bitcoin Cash Price Analysis
This week, bitcoin cash price started a major decline from well above $380 against the US Dollar. BCH price broke a couple of key supports near the $360 level to enter a bearish zone.
Moreover, there was a break below the $350 support and the 55 simple moving average (4-hours). The price dived below $320 and tested the key $300 support area. It is currently correcting higher and trading above the $320 level.
There was a break above the 23.6% Fib retracement level of the downward move from the $410 high to $300 low. On the upside, there are many hurdles for the bulls near the $330 and $350 levels.
At the moment, there is a short term ascending channel forming with support near $318 on the 4-hours chart of the BCH/USD pair. If there is an upside break above the channel resistance and $340, bitcoin cash price could recover towards the $350 and $360 resistance levels.
An intermediate resistance is near the $355 level. It coincides with the 50% Fib retracement level of the downward move from the $410 high to $300 low. Therefore, a clear break above the $350 and $360 levels is must for a fresh increase in the coming sessions.
Conversely, the price could struggle to recover above $330 and $340. In the mentioned case, it could decline below the $310 support. The main support is near the $300 handle, below which the price might tumble again.
Looking at the chart, bitcoin cash price is showing a few bearish signs below the $330 and $350 levels. If the price fails to recover above $350, there are high chances of more losses below $300 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 still well below the 40 level.
Key Support Levels – $310 and $300.
Key Resistance Levels – $330 and $350.
