Bitcoin cash price failed to break the $450.00 resistance and declined recently below $425.00. BCH is currently correcting higher, but gains are likely to be contained.
- Bitcoin cash price declined heavily below the $425.00 and $400.00 support levels.
- BCH broke a major bullish trend line with support near $434.00 on the 2-hours chart.
- If there is a recovery, the price is likely to face sellers near $414.00 or $430.00.
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Bitcoin Cash Price Analysis (BCH to USD)
There was a steady rise in bitcoin cash price above the $420.00 and $440.00 levels. However, BCH/USD failed to gain momentum above the $450.00 level. As a result, there was a sharp decline below $420.00 and $400.00. Similarly, there were sharp losses in bitcoin, Ethereum, ripple, and ADA.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair formed a swing high at $453.00 and recently declined heavily. It even broke the $420.00 and $400.00 support levels. Besides, there was a close below the $415.00 level and the 25 simple moving average (2-hours).
During the decline, the price broke a major bullish trend line with support near $434.00 on the same chart. The price even traded below the $380.00 level and a new weekly low was formed at $375.00.
The price is currently correcting higher above $390.00 and the 23.6% Fib retracement level of the recent drop from the $453.01 high to $375.01 low.
On the upside, there are many resistances near the $425.00 and $430.00 levels. The 50% Fib retracement level of the recent drop from the $453.01 high to $375.01 low is also near the $415.00 zone to act as a hurdle.
The main resistance is near the $420.00 level and the 25 SMA. There is also a bearish trend line forming on the same chart with current resistance near $430.00.
Therefore, if there is an upside correction in bitcoin cash, the bulls are likely to struggle near $420.00 or $430.00. Only a close above the $430.00 level and the 25 SMA could start a strong upward move in the coming sessions.
The market data is provided by TradingView, Coinbase.
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