Bitcoin Cash Price Technical Analysis – BCH/USD To Test $500

Key Points

• Bitcoin cash price declined further and traded below the $550 level against the US Dollar.
• This week’s highlighted a descending channel pattern with resistance near $600 on the hourly chart of BCH/USD (data feed from Kraken) is still active.
• The price might continue to extend losses and could soon trade towards the $500 level.

Bitcoin cash price failed to recover above the $600 level against the US Dollar. BCH/USD is now at risk of more declines towards the $500 handle.

Bitcoin Cash Price Bearish Bias

This week seems to be a bearish one for Bitcoin cash price as it moved below $650 and $600 against the US Dollar. The price is in a declining path and recently traded below the $550 level. A new weekly low was formed near $520.39 from where the price is attempting a recovery. An initial hurdle on the upside sits around the 23.6% Fib retracement level of the last drop from the $660 high to $520 low.

However, a recover won’t be easy as there are many hurdles on the upside near $600 and $620. Most importantly, this week’s highlighted a descending channel pattern with resistance near $600 on the hourly chart of BCH/USD is a major barrier. The channel is acting as a bearish bias medium for the price below $650. As long as the price is below the channel resistance at $600, it may continue to decline.

The channel resistance is now near the 50% Fib retracement level of the last drop from the $660 high to $520 low. Therefore, the $600 level could prove to be a crucial resistance in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is moving nicely in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is well below the 50 level and struggling to move higher.

Major Support Level – $500

Major Resistance Level – $600

Charts courtesy – Trading View, Kraken

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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