Bitcoin Cash Price (BCH) Turned Sell on Rallies, $400 Holds Key
After a strong rejection near the $428.00 resistance, bitcoin cash price started a major decline. BCH to USD traded below $400.00 and it retested the key $370.00 support area.
Key Takeaways: BCH/USD
- Bitcoin cash price is down more than 10% and it is currently consolidating above $370.00 against the US Dollar.
- BCH/USD is likely to face sellers near $400.00 and a connecting bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Bitcoin is facing a strong selling interest and it is now well below the $10,000 pivot level.
Bitcoin Cash Price Analysis
In the past two days, there were swing moves in bitcoin cash price from the $370.00 support area. BCH/USD climbed higher nicely above the $400.00 level, but it struggled to continue higher above $428.00 and $430.00.
Looking at the 2-hours chart, bitcoin cash price topped near the $428.48 level and remained below the 50 simple moving average (2-hours, purple). Recently, there was a sharp decline below the $400.00 and $380.00 levels.
Finally, the price retested the $370.00 support area and a swing low was formed near $369.77. At the moment, the price is consolidating losses above the $370.00 level and trading near the 23.6% Fib retracement level of the recent decline from $428.48 to $369.77.
On the upside, there are many hurdles waiting near $400.00, $405.00, and the 50 simple moving average (2-hours, purple). Besides, bitcoin cash price is likely to face sellers near $400.00 and a connecting bearish trend line on the 2-hours chart.
The 50% Fib retracement level of the recent decline from $428.48 to $369.77 is also waiting near the $399.00 level to act as a resistance. Therefore, the price must gain momentum above the $400.00 resistance and the 50 SMA to start a fresh increase.
Conversely, there is a risk of another drop below the $375.00 and $370.00 levels. In the mentioned case, the price is likely to accelerate its losses towards the $350.00 level in the near term.
The overall trend is bearish unless bitcoin cash price climbs back above $400.00 and $405.00.