Bitcoin Cash (BCH) Price Analysis: Can Price Hold This Crucial Support?
Bitcoin cash price topped near the $440.00 level and recently corrected lower. BCH is testing an important support near $400.00, below which it could turn bearish.
- Bitcoin cash price recently corrected below the $422.00 and $410.00 support levels.
- BCH traded below a bearish continuation pattern with support at $412.00 on the 2-hours chart.
- If the bulls fail to defend the $400.00 support, there could be a sharp decline in the short term.
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Bitcoin Cash Price Analysis (BCH to USD)
Earlier this week, bitcoin cash price climbed above $430.00, following gains in bitcoin. However, BCH/USD struggled to clear the $440.00 resistance zone and recently started a fresh decline.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair made two attempts to climb above $440.00, but it failed. As a result, the pair started a downside correction and traded below the $430.00 and $422.00 support levels.
There was a break below the 23.6% Fib retracement level of the upward wave from the $371.16 low to $439.68 high. Moreover, there was a break below a key bullish trend line at $428.00.
The price even broke the $410.00 support and the 25 simple moving average (2-hours). It tested the $400.00 support area and stayed above the 50% Fib retracement level of the upward wave from the $371.16 low to $439.68 high.
Recently, there was a recovery, but the price failed to surpass the $420.00 level. It traded below a bearish continuation pattern with support at $412.00 on the same chart, opening the doors for more losses.
Therefore, if there is a downside break below the $405.00 and $400.00 support, the price could start a fresh decline towards the $385.00 or $380.00 level.
Conversely, if bitcoin cash stays above $400.00, it could climb higher once again. An initial resistance is near the $420.00 level, above which the price might revisit the $440.00 resistance.
Besides, bitcoin price could trade past $9,500, which might boost the market sentiment for BCH, ETH, XRP, LTC and a few others in the coming sessions.
The market data is provided by TradingView, Coinbase.
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