Bitcoin Cash Price (BCH) Turns Bearish, Recoveries Remain Capped
In the past 3-4 days, bitcoin cash price declined heavily below $360.00. BCH to USD broke many supports near $350.00 and $330.00 to move into a bearish zone.
Key Takeaways: BCH/USD
- Bitcoin cash price entered into a sell zone below the $350.00 pivot level against the US Dollar.
- BCH/USD is likely to face a strong resistance near $330.00 and a key bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Bitcoin is currently recovering, but it could struggle to clear the $9,000 resistance area.
Bitcoin Cash Price Analysis
This week, the crypto market saw a sharp increase in selling, resulting in a major drop in bitcoin cash price from well above the $360.00 level. BCH/USD broke many key supports near the $350.00 level to enter a bearish zone.
Looking at the 2-hours chart, bitcoin cash price even traded below the $330.00 pivot level and settled well below the 50 simple moving average (2-hours, purple). Finally, the price traded as low as $299.89 and it is currently correcting higher.
It surpassed the $315.00 resistance level and the 23.6% Fib retracement level of the recent drop from $361.57 to $299.89. However, the current upward move is facing a strong resistance near the $350.00 level (the previous breakdown zone).
The 50% Fib retracement level of the recent drop from $361.57 to $299.89 is near the $330.00 level. Therefore, bitcoin price likely to face a strong resistance near $330.00 and a key bearish trend line on the 2-hours chart.
If the bulls succeed in gathering pace above the $330.00 level and the connecting bearish trend line, there are chances of a decent recovery towards the $345.00 and $350.00 levels.
Any further gains could lead the price towards the $360.00 level and the 50 simple moving average (2-hours, purple). Conversely, there is a risk of another drop below the $315.00 and $310.00 levels.
If the bears gain pace below the $310.00 level, bitcoin cash price might decline heavily below the $300.00 handle. In the mentioned case, the next stop for the bulls is near the $310.00 level.