Bitcoin Cash (BCH) Analysis: Downward Drift Reaches Crucial Support

Bitcoin cash price declined more than 15% after bitcoin nosedived below the $12,500 support. BCH is currently approaching the main $400.00-410.00 support, where the bulls may take a stand.

• Bitcoin cash price declined more than $100.00 in the past five sessions and traded below $460.00.
• BCH traded below a major bullish line with support near the $480.00 level on the 2-hours chart.
• The main support near $400.00-410.00 might act as a strong buy zone in the near term.

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Bitcoin Cash Price Analysis (BCH to USD)

In the past four sessions, bitcoin price declined sharply after trading close to the $14,000 mark. BTC’s decline sparked heavy downsides in altcoins such as BCH, Ethereum, ripple, EOS and cardano.

Click to Enlarge Chart

Looking at the 2-hour chart of BCH/USD, the pair topped near the $518.00 level and started a sharp decline. During the slide, the pair broke a few important supports near the $480.00, $460.00 and $440.00 levels.

Moreover, the price traded below a major bullish line with support near the $480.00 level. Later, BCH even settled below the $440.00 level and the 25 simple moving average (2-hours).

The decline was such that the price tested the main $400.00-410.00 support area. A swing low was formed at $408.55 and the price is currently correcting higher.

An initial resistance is near the $430.00 level plus the 23.6% Fib retracement level of the recent drop from the $515.98 high to $408.55 low. If the price recovers above the $430.00 resistance area, there is a chance of an increase towards the key $460.00 resistance.

The mentioned $460.00 level was a support earlier and now it could act as a strong resistance. Besides, the 50% Fib retracement level of the recent drop from the $515.98 high to $408.55 low is also near the $460.00 level.

On the downside, the main support is near the $400.00-410.00 area. If bitcoin slides below $11,000, there are high chances that BCH/USD could break the $400.00 support level and extend losses in the near term.

The market data is provided by TradingView, Coinbase.

   

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