Bitcoin Cash Price Weekly Analysis – BCH/USD Bearish Breakout?

Key Points

• Bitcoin cash price after a sharp decline corrected higher towards $740 against the US Dollar.
• There is a contracting triangle pattern forming with support at $600 on the 4-hours chart of BCH/USD (data feed from Kraken).
• A break and close below $600 could open the doors for more declines in the near term.

Bitcoin cash price has likely completed a correction at $740 against the US Dollar, and BCH/USD is now positioning for more declines.

Bitcoin Cash Price Support

There were choppy moves in BCH price this past week as it moved above the $700 level against the US Dollar. After a decline towards the $530 level, there was a correction initiated. The price moved above the 38.2% Fib retracement level of the last decline from the $640 high to $530 low. However, the upside move was limited by the $750 resistance zone.

The price failed near the 50% Fib retracement level of the last decline from the $640 high to $530 low. After the failure, the price started a declining path and currently trading below the $660 support area. There is a contracting triangle pattern forming with support at $600 on the 4-hours chart of BCH/USD. There are high chances that the pair would break the triangle support at $600 and move down. As long as the pair is below the triangle resistance at $650, it is at risk of a downside break.

Once there is a break, the pair could trade towards the $530 low. Alternatively, if buyers come into the action and manages to take the price above $650, there can be a retest of $740. It all depends on the upcoming break either below $600 or above $650.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is mostly flat and suggesting range trading.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level, and pointing a bearish sign.

Major Support Level – $600

Major Resistance Level – $650

 

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.

<!–

–>