Bitcoin Cash Price Weekly Analysis – BCH/USD Holding Key Support

Key Points

• Bitcoin cash price after forming a base above $540 against the US Dollar started a correction.
• There was a break above a major declining channel at $575 on the 4-hours chart of BCH/USD (data feed from Kraken).
• On the downside, the $550-540 support area holds a lot of importance in the near term.

Bitcoin cash price is struggling to recover above $650 against the US Dollar. BCH/USD has to stay above $540 to remain in the bullish zone.

Bitcoin Cash Price Support

This past week was mostly bearish for BCH price until it found support near $540 against the US Dollar. The price formed a base near $540-550 and later started a correction. During the correction wave, the price was able to settle above the $560 level. It opened the doors for a break of the 23.6% Fib retracement level of the last decline from the $940 high to $525 low.

Moreover, there was a break above a major declining channel at $575 on the 4-hours chart of BCH/USD. It further opened the doors for more gains above $580 in the near term. The pair traded towards the 38.2% Fib retracement level of the last decline from the $940 high to $525 low. It faced strong offers near $680 and failed to move further higher. As a result, there was a downside move and the price is currently trading near $590.

On the downside, the $550-540 support area holds a lot of importance and must hold if buyers have to remain in control. On the upside, we need a proper close above $650 for a test of $800 during the upcoming week.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is slowly moving into the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Level – $540

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.

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