Bitcoin Cash Price Weekly Analysis – BCH/USD’s Upsides Capped

Key Points

• Bitcoin cash price failed to remain above the $500 level against the US Dollar, and traded below $450.
• There are two bearish trend lines forming with resistance at $450 on the 4-hours chart of BCH/USD (data feed from Kraken).
• The pair needs to break the $450 level in order to gain traction towards $500 and higher.

Bitcoin cash price is struggling to remain above $500 against the US Dollar. BCH/USD is correcting lower with resistance on the upside at $450.

Bitcoin Cash Price Resistance

There was a slow and steady recovery from the $400 level in BCH price against the US Dollar. The price traded above the $500 level and tested the $550 resistance zone. However, buyers failed to keep the price above $500 and as a result, there was a downside break. The price moved below the 38.2% Fib retracement level of the last wave from the $302.00 low to $549.8 high.

Sellers were in control and they managed to push the price below $420. There was a test of the 61.8% Fib retracement level of the last wave from the $302.00 low to $549.8 high. Later, buyers appeared and started a recovery above $420. However, the upside seems to be capped by the $470 level. At the moment, there are two bearish trend lines forming with resistance at $450 on the 4-hours chart of BCH/USD. Therefore, a close above the $450 resistance is must for more gains.

If the price continue to struggle, it could retest $400. A break of $400 might push the price back towards $360. On the upside, a break above $450 is needed for gains above $500 in the near term.

Looking at the technical indicators:

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

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

Major Support Level – $400

Major Resistance Level – $450

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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