Bitcoin Cash Analysis: Bears Gain Strength Below $550

  • Bitcoin cash price started a fresh decline from the $570 zone against the US Dollar.
  • The price is now trading below the $550 zone and the 55 simple moving average (4 hours).
  • There is a key bearish trend line forming with resistance near $505 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could continue to move down if it stays below the $525 resistance zone.

Bitcoin cash price is struggling below the $550 zone against the US Dollar, like Bitcoin. BCH/USD could restart its decline if it fails near $525 or $540.

Bitcoin Cash Price Analysis

Bitcoin cash price struggled to continue higher above the $570 resistance zone. BCH formed a short-term top near $570 before it started a fresh decline. There was a drop below the $550 and $540 support levels.

It even declined below the $500 support level. The price tested the $445 support. A low was formed near the $444.49 level and the price is now consolidating losses. Bitcoin cash is now trading below the $540 zone and the 55 simple moving average (4 hours).

If there is a fresh increase, it could face resistance near the $475 level. It is close to the 23.6% Fib retracement level of the downward move from the $569 swing high to the $444 low.

There is also a key bearish trend line forming with resistance near $505 on the 4-hour chart of the BCH/USD pair. It is close to the 50% Fib retracement level of the downward move from the $569 swing high to the $444 low. The next major resistance is near the $525 level.

Any more gains above $525 could set the pace for a move toward the $540 level. If there is a move above the $540 resistance, the price could rise toward the $570 zone. If not, the price might continue lower below $450.

Immediate support on the downside is near the $445 zone. The next major support is near the $422 level, below which the bears might aim for $405 or even $400.

Bitcoin Cash Price

Looking at the chart, Bitcoin cash price is now trading below the $520 zone and the 55 simple moving average (4 hours). Overall, the price could start a fresh decline if it stays below the $525 resistance zone.

Technical indicators

4 hours MACD – The MACD for BCH/USD is gaining pace in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is below the 50 level.

Key Support Levels – $445 and $420.

Key Resistance Levels – $505 and $525.

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