Key Points
- Bitcoin cash price started a major downside correction from the $635 swing high against the US Dollar.
- There is a key bearish trend line in place with resistance at $550 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently trading in a bearish zone with an immediate support near the $530 level.
Bitcoin cash price is under pressure below $550 against the US Dollar. BCH/USD could continue to move down towards the $500 or $480 level.
Bitcoin Cash Price Analysis
This past week, there was a decent upward move from the $480 swing low in bitcoin cash price against the US Dollar. The BCH/USD pair traded above the $520 and $550 resistance levels and settled above the 100 simple moving average (4-hours). The upside move gained pace above the $600 and the price traded as high as $637. Later, there was a downside correction and the price moved below the $580 and $550 supports.
The price traded as low as $521 and it is currently consolidating losses. An initial resistance on the upside is near $545-550. The 23.6% Fib retracement level of the recent slide from the $538 swing high to $521 low is also near $550. More importantly, there is a major bearish trend line in place with resistance at $550 on the 4-hours chart of the BCH/USD pair. Therefore, a break above the trend line and $555 is needed for a recovery. However, the price is likely to struggle near the $575-580 resistance zone. Besides, the 50% Fib retracement level of the recent slide from the $538 swing high to $521 low is also near $580.
Looking at the chart, BCH price may surpass the $550 resistance, but it is likely to face a strong resistance near $575-580. Therefore, it could even break the $521 low and decline towards $500 or $480.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is back in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
Major Support Level – $520
Major Resistance Level – $580
