- Bitcoin cash price declined further and moved below the $500 support against the US Dollar.
- This week’s highlighted descending channel pattern with current resistance at $570 on the hourly chart of BCH/USD (data feed from Kraken) is still active.
- The price might correct a few points higher, but most likely to face sellers near $560 in the near term.
Bitcoin cash price is recovering after forming a new low below $500 against the US Dollar. BCH/USD is likely to face sellers near $570 in the short term.
Bitcoin Cash Price Resistance
This week was mostly bearish for Bitcoin cash price as it moved below $550 against the US Dollar. Yesterday, I pointed out that the price might test the $500 level. The price not only tested the $500 level, but also breached the stated level towards $470. There was even a break below the 1.618 extension of the last wave from the $551 low to $625 high. BCH is clearly in a downtrend and likely to continue lower below $600.
The most important point was test and break of $500. The price traded as low as $471 and currently correcting higher. It has moved above the 23.6% Fib retracement level of the last decline from the $625 high to $471 low. However, there was a failure to break the $530 level. Buyers also struggled to break the 38.2% Fib retracement level of the last decline from the $625 high to $471 low. However, the most important resistance is around the $560 level.
The trend is bearish since this week’s highlighted descending channel pattern with current resistance at $570 on the hourly chart of BCH/USD is still active. Selling rallies near $570 might be considered with a stop above $580.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is recovering, but losing momentum.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently above the 50 level.
Major Support Level – $470
Major Resistance Level – $570
Charts courtesy – Trading View, Kraken