Bitcoin Cash Price Weekly Analysis – BCH/USD Struggle Continues

Key Points

• Bitcoin cash price after bouncing from $500 failed near $725 against the US Dollar.
• There was a break above a key descending channel at $590 on the 4-hours chart of BCH/USD (data feed from Kraken).
• The pair is once again heading lower and might trade towards $550 in the near term.

Bitcoin cash price after a correction struggled to remain above $700 against the US Dollar. BCH/USD is again bearish and likely to retest $550.

Bitcoin Cash Price Trend

There was a decent action in BCH price this past week as it found support near $500 against the US Dollar. The price gained heavy bids and was able to spike above the $550 and $600 resistance levels. It even managed to move above the 38.2% Fib retracement level of the last drop from the $938 high to $501 low. It was a positive sign and helped buyers in pushing the price above $700.

During the upside, there was a break above a key descending channel at $590 on the 4-hours chart of BCH/USD. However, the price failed to remain above the $700 level for a long time. After trading as high as $724.8, there was a downside reaction. The pair is once again moving lower and already breached the 50% Fib retracement level of the last wave from the $501 low to $724 high. At the moment, the price is trading near the broken channel trend line at $575.

A break below could take the price towards the 76.4% Fib retracement level of the last wave from the $501 low to $724 high. The downside pressure remains intact and more losses towards $550 are very likely.

Looking at the technical indicators:

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

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is heading towards the oversold levels.

Major Support Level – $550

Major Resistance Level – $640

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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