HomeAltcoin NewsBitcoin Cash Analysis: Primed For More Losses Below $300

Bitcoin Cash Analysis: Primed For More Losses Below $300

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  • 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.

Bitcoin Cash Price
Bitcoin Cash Price

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.

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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