- Bitcoin cash price recovered from the $301 low but faced a major hurdle against the US Dollar.
- There is a crucial bearish trend line with resistance at $475 forming on the 4-hours chart of BCH/USD (data feed from Kraken).
- The pair might continue to struggle to break the $450-475 resistance in the near term.
Bitcoin cash price is recovering above $400 against the US Dollar. However, a major resistance near $475 is intact for BCH/USD on the upside.
Bitcoin Cash Price Upside Hurdle
This past week, we saw a major decline in BCH price below the $500 level against the US Dollar. The price traded as low as $301.2 from where a recovery wave was started. There was a break of the 38.2% Fib retracement level of the last drop from the $725 high to $301 low. It ignited an upside move and the price moved above the $500 level.
However, the upside move was protected by a major hurdle near $550. The price failed to settle above the 50% Fib retracement level of the last drop from the $725 high to $301 low. Also, a crucial bearish trend line with current resistance at $475 on the 4-hours chart of BCH/USD acted as a barrier. Sellers are once in control and the price seems to be forming a bearish structure. It is trading just above the $400 level and remains at a risk of more declines.
If sellers succeed in breaking the $400 level again, there could be a retest of $350. On the upside, a close above $475 is needed for the price to gain momentum towards $550-600.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is still in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level and struggling.
Major Support Level – $400
Major Resistance Level – $475
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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