- Bitcoin cash price recovered from the $301 low but faced a major hurdle against the US Dollar.
- There is a crucial bearish trend line with resistance at $475 forming on the 4-hours chart of BCH/USD (data feed from Kraken).
- The pair might continue to struggle to break the $450-475 resistance in the near term.
Bitcoin cash price is recovering above $400 against the US Dollar. However, a major resistance near $475 is intact for BCH/USD on the upside.
Bitcoin Cash Price Upside Hurdle
This past week, we saw a major decline in BCH price below the $500 level against the US Dollar. The price traded as low as $301.2 from where a recovery wave was started. There was a break of the 38.2% Fib retracement level of the last drop from the $725 high to $301 low. It ignited an upside move and the price moved above the $500 level.
However, the upside move was protected by a major hurdle near $550. The price failed to settle above the 50% Fib retracement level of the last drop from the $725 high to $301 low. Also, a crucial bearish trend line with current resistance at $475 on the 4-hours chart of BCH/USD acted as a barrier. Sellers are once in control and the price seems to be forming a bearish structure. It is trading just above the $400 level and remains at a risk of more declines.
If sellers succeed in breaking the $400 level again, there could be a retest of $350. On the upside, a close above $475 is needed for the price to gain momentum towards $550-600.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is still in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level and struggling.
Major Support Level – $400
Major Resistance Level – $475
Charts courtesy – Trading View, Kraken