BUY BITCOIN
Key Points
- Bitcoin cash price started a major downside move from the $720 swing high against the US Dollar.
- There is a descending triangle pattern forming with resistance at $500 on the 4-hours chart of BCH/USD (data feed from Kraken).
- The pair is likely to continue moving lower as long as there is no close above the $500 handle.
Bitcoin cash price declined below the $500 level against the US Dollar. BCH/USD remains in the bearish zone and might retest the $400 level.
Bitcoin Cash Price Resistance
There was a solid selling interest near the $720 level in BCH price against the US Dollar. The price faced heavy selling pressure and moved below the $600 and $520 support levels. It even traded below the $400 level and formed a low at $307.6. Later, a recovery wave was initiated and the price moved back above the $400 level. It also cleared the 23.6% Fib retracement level of the last drop from the $720 high to $307 low. However, the upside move failed near the $470 resistance area.
The 38.2% Fib retracement level of the last drop from the $720 high to $307 low also acted as a hurdle for more gains. There is a descending triangle pattern forming with resistance at $500 on the 4-hours chart of BCH/USD. The triangle resistance near $500-520 is a crucial hurdle for buyers in the near term. The 50% Fib retracement level of the last drop from the $720 high to $307 low at $514 is also a key resistance.
As long as the price is below the $500-520 resistance levels, it might continue to move down. On the downside, an immediate support is near $400.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is about to move back in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is still below the 50 level.
Major Support Level – $400
Major Resistance Level – $500
Charts courtesy – Trading View, Kraken
