Bitcoin Cash Analysis: Strong Support Forming Near $400

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.

Bitcoin Cash Price

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.

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