Bitcoin Cash Analysis: BCH in an Uptrend, Could Rise Sharply if $400 Breaks
Bitcoin cash price seems to be forming a decent support near the $375.00 area. BCH is currently correcting higher and it could rise sharply if there is an upside break above $400.00.
- Bitcoin cash price started a decent recovery after forming a support base near $375.00.
- BCH broke a major bearish trend line with resistance near $388.00 on the 2-hours chart.
- If the bulls gain pace above $400.00, the price could start a strong recovery in the near term.
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Bitcoin Cash Price Analysis (BCH to USD)
In the past few days, there was a strong decline in bitcoin cash price below the $400.00 support. BCH/USD tested the $365.00 support and recently recovered higher similar to bitcoin, Ethereum, ripple, and ADA.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair formed a strong support area near $375.00. It recently started an upside correction above the $380.00 and $390.00 resistance levels.
There was a break above the 23.6% Fib retracement level of the recent drop from the $483.31 high to $363.42 low. Moreover, there was a break above a major bearish trend line with resistance near $388.00 on the same chart.
The pair tested the $400.00 resistance and settled above the 25 simple moving average (2-hours). At the moment, the price is currently consolidating near the $390.00 level.
An immediate support is near the $385.00 level and the 25 simple moving average (2-hours). If there is a downside break below the $385.00 support and the 25 simple moving average (2-hours), the price could move back in a negative zone.
On the upside, an initial resistance is near the $400.00 barrier. If there is a break above $400.00, the price could continue higher. The next resistance is near the $420.00 level.
The 50% Fib retracement level of the recent drop from the $483.31 high to $363.42 low is also near the $423.00 area to act a solid resistance.
Therefore, if there is an upside break above the $400.00 barrier, bitcoin cash price could accelerate higher. Conversely, a break below $380.00 might start a fresh decline in BCH/USD.
The market data is provided by TradingView, Coinbase.
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