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, KrakenDisclaimer: 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.
Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets. View all posts by Aayush Jindal