Bitcoin Cash Price Weekly Analysis – BCH/USD Forming Bottom?

October 8, 2017

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Key Points

Bitcoin cash price declined heavily this past week and broke the $400 support against the US Dollar.
Recently, there was a break above a bearish trend line with resistance at $350 on the 4-hours chart of BCH/USD (data feed from Kraken).
The pair needs to gain momentum above the $380 level to move back in the bullish zone.

Bitcoin cash price after a sharp decline against the US Dollar formed bottom. BCH/USD is now correcting higher towards $400 and might gain pace.

Bitcoin Cash Price Upside Break

This past week there was a continuous decline in BCH price from the $450 high against the US Dollar. The price followed a declining path and moved below the $420, $400 and $380 support levels. It traded as low as $343 and it seems like the price is now forming a bottom. It is slowly moving in a range above $340 and forming a consolidation pattern. There was a break above a bearish trend line with resistance at $350 on the 4-hours chart of BCH/USD.

It has cleared the way for more gains above $350 in the near term. An initial resistance on the upside is around the 23.6% Fib retracement level of the last decline from the $486 high to $343 low. However, it won’t be easy for buyers to gain momentum above $380. The next major hurdle is near the 38.2% Fib retracement level of the last decline from the $486 high to $343 low at $390. The mentioned $390 level was a support earlier and now it would stop upsides in BCH.

However, the recent break is a positive sign above $350. As long as the price is above $340, it could attempt a break of $380.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is almost neutral in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is recovering for the 30 level.

Major Support Level – $340

Major Resistance Level – $380

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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