- Bitcoin cash price declined heavily below $500 and $450 against the US Dollar.
- The price is holding the key $400 support, but it is well below the 55 simple moving average (4-hours).
- There was a break below a major bullish trend line with support near $490 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair is likely to recover sharply as long as it is above the $400 and $385 support levels.
Bitcoin cash price is down over 20% from well above $500 against the US Dollar, similar to bitcoin. BCH/USD is likely to recover nicely unless there is a daily close below $400.
Bitcoin Cash Price Analysis
After a strong rally, bitcoin cash price struggled to gain momentum above $550. BCH price formed a high near the $554 level and recently started a strong decline, similar to bitcoin and Ethereum.
The price broke the $500 support and declined over 20%. There was also a break below the $440 support and a close below the 55 simple moving average (4-hours). There was also a break below a major bullish trend line with support near $490 on the 4-hours chart of the BCH/USD pair.
Finally, there was a spike below the $400 level and the price traded as low as $389. It is currently correcting higher and trading above the $400. An initial resistance on the upside is near $428.
The 23.6% Fib retracement level of the recent decline from the $554 high to $389 low is near the $428 level. The next major resistance on the upside is near the $450 level. Any more gains could lead the price towards the $470 resistance zone.
The 50% Fib retracement level of the recent decline from the $554 high to $389 low is near the $470 level to act as a major barrier. On the downside, the price is likely to remain stable above $400.
A close below the $400 support, with a follow up move below the $389 swing low could accelerate losses. In the stated case, the price could easily dive towards the $350 level.
Looking at the chart, bitcoin cash price is clearly holding the key $400 support, but it is well below the 55 simple moving average (4-hours). Overall, the price is likely to recover sharply as long as it is above the $400 and $385 support levels.
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 currently well below the 40 level.
Key Support Levels – $400 and $350.
Key Resistance Levels – $450 and $470.
