Key Points
- Bitcoin cash price after bouncing from $500 failed near $725 against the US Dollar.
- There was a break above a key descending channel at $590 on the 4-hours chart of BCH/USD (data feed from Kraken).
- The pair is once again heading lower and might trade towards $550 in the near term.
Bitcoin cash price after a correction struggled to remain above $700 against the US Dollar. BCH/USD is again bearish and likely to retest $550.
Bitcoin Cash Price Trend
There was a decent action in BCH price this past week as it found support near $500 against the US Dollar. The price gained heavy bids and was able to spike above the $550 and $600 resistance levels. It even managed to move above the 38.2% Fib retracement level of the last drop from the $938 high to $501 low. It was a positive sign and helped buyers in pushing the price above $700.
During the upside, there was a break above a key descending channel at $590 on the 4-hours chart of BCH/USD. However, the price failed to remain above the $700 level for a long time. After trading as high as $724.8, there was a downside reaction. The pair is once again moving lower and already breached the 50% Fib retracement level of the last wave from the $501 low to $724 high. At the moment, the price is trading near the broken channel trend line at $575.
A break below could take the price towards the 76.4% Fib retracement level of the last wave from the $501 low to $724 high. The downside pressure remains intact and more losses towards $550 are very likely.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is currently in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is heading towards the oversold levels.
Major Support Level – $550
Major Resistance Level – $640