Bitcoin Cash Analysis: BCH Remains Supported On Dips For Fresh Rise

Bitcoin cash price corrected lower recently after it was rejected near $450 against the US Dollar. BCH spiked below the $380 level, but it is likely to bounce back above $400 and $420 in the near term.

Bitcoin Cash Price Analysis

This week, bitcoin cash price traded higher above the $430 and $440 levels against the US Dollar. The BCH/USD pair traded close to the key $450 resistance level, where sellers emerged. A swing high was formed at $448.6 before the price started a downside correction. It traded below the $440 and $430 support levels. Moreover, there was a break below the $410 support and the 55 simple moving average (4-hours).

The decline got traction below the 50% Fib retracement level of the last wave from the $336 swing low to $448 high. Finally, there was a spike below the $380 support level, plus the 61.8% Fib retracement level of the last wave from the $336 swing low to $448 high. However, the decline was protected near $372. There is also a key bullish trend line forming with support near $378 on the 4-hours chart of the BCH/USD pair. If there is downside break below the trend line, the pair could decline further below the $370 and $362 support levels.

The next key support is at $340, where buyers are likely to protect additional losses. At the outset, the price is currently moving higher and trading above $390 and the 55 SMA. However, the $405 and $410 levels are acting as strong hurdles. A convincing break above the $420 resistance is likely to open the doors for more gains. The next major resistance is at $450, above which the price could test $472.

Looking at the chart, bitcoin cash price is clearly facing a strong resistance near $415 and $450. Having said that, there are many key supports on the downside near the $380 and $362 levels. As long as the price is above $362, it could bounce back above $415 and $420.

Technical indicators

4 hours MACD – The MACD for BCH/USD is slowly gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently moving lower and recently decline below 50.

Key Support Levels – $380 and $362.

Key Resistance Levels – $415 and $450.

Source: Read Full Article