Bitcoin Cash Price Weekly Analysis – BCH/USD Remains Bearish

Key Points

• Bitcoin cash price started a major downside move from the $720 swing high against the US Dollar.
• There is a descending triangle pattern forming with resistance at $500 on the 4-hours chart of BCH/USD (data feed from Kraken).
• The pair is likely to continue moving lower as long as there is no close above the $500 handle.

Bitcoin cash price declined below the $500 level against the US Dollar. BCH/USD remains in the bearish zone and might retest the $400 level.

Bitcoin Cash Price Resistance

There was a solid selling interest near the $720 level in BCH price against the US Dollar. The price faced heavy selling pressure and moved below the $600 and $520 support levels. It even traded below the $400 level and formed a low at $307.6. Later, a recovery wave was initiated and the price moved back above the $400 level. It also cleared the 23.6% Fib retracement level of the last drop from the $720 high to $307 low. However, the upside move failed near the $470 resistance area.

The 38.2% Fib retracement level of the last drop from the $720 high to $307 low also acted as a hurdle for more gains. There is a descending triangle pattern forming with resistance at $500 on the 4-hours chart of BCH/USD. The triangle resistance near $500-520 is a crucial hurdle for buyers in the near term. The 50% Fib retracement level of the last drop from the $720 high to $307 low at $514 is also a key resistance.

As long as the price is below the $500-520 resistance levels, it might continue to move down. On the downside, an immediate support is near $400.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is about to move back in the bearish zone.

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

Major Support Level – $400

Major Resistance Level – $500

 

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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