As an experienced financial analyst, I have been closely monitoring the Bitcoin Cash (BCH) market. Based on the latest price action and technical analysis, it appears that BCH is currently consolidating after a sharp decline below key support levels.
The price of Bitcoin Cash dipped below the $450 mark, causing further declines. If Bitcoin Cash can break past $440, it may initiate a new upward trend.
- Bitcoin cash price started a fresh decline below the $440 support.
The price is trading below $440 and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance at $438 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
The pair could start a decent upward move if it clears the $440 resistance zone.
Bitcoin Cash Price Revisits Support
Over the last several days, Bitcoin Cash has followed a downward trend similar to Bitcoin and Ethereum. The value of Bitcoin Cash dropped beneath the $450 and $440 thresholds, shifting it into a temporary bear market.
At a price of $421, a bearish trend took shape and the market is currently regrouping. A slight advance occurred near the $430 mark. The value surpassed the 23.6% Fibonacci retracement threshold in the downtrend from the peak at $457 to the trough at $421.
The price of Bitcoin Cash has yet to surpass the $440 mark and the 100-simple moving average on the 4-hour chart. A barrier to further growth is present around the $438 level. Additionally, a significant bearish trend line emerges on the same chart, with resistance at $438 for the BCH/USD pair.
The trend line is nearly touching the 50% Fibonacci retracement mark of the decline from the $457 peak to the $421 trough. A strong break above the $440 barrier could initiate a noteworthy uptrend. The upcoming significant resistance lies around $4502, surpassing which might propel the price upward towards the $465 mark. Any additional advancements may push the price further towards the $480 resistance area.
Fresh Drop in BCH?
Should the price of Bitcoin Cash fall short of breaking the $438 resistance, there’s a possibility it may initiate a new slide. A preliminary floor in its descent can be found around the $425 mark.
As an analyst, I would interpret the market situation as follows: The next significant level of resistance lies around the $420 mark, at which point bullish investors are expected to re-enter the market. Should the price fail to maintain its position above this support level, it may be drawn down to challenge the $400 mark. Any further declines could potentially push the price towards the near-term zone of $384.
Technical indicators
4-hour MACD – The MACD for BCH/USD is losing pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently in near the 50 level.
Key Support Levels – $425 and $420.
Key Resistance Levels – $440 and $450.
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2024-05-13 10:16