Bitcoin cash price found support near $470 and recovered against the US dollar. However, BCH/USD is facing much important resistance near $620-650 on the daily chart.
- Bitcoin cash price recovery from the $470 low could be capped near the $620 and $650 levels.
- There is a significant bearish trend line in place with resistance near $630 on the daily chart of BCH/USD.
- The price is currently consolidating below the $600 resistance with bearish signs.
Bitcoin Cash price analysis
During the start of this month, bitcoin cash price declined heavily and broke the $700 and $680 support levels against the US Dollar. BCH/USD also broke the $600 and $500 support levels before buyers appeared near $470.
The daily chart of BCH/USD indicates that the price broke a key bullish trend line at $675 to move into a bearish zone. Later, it formed a short-term bottom at $470 and is currently correcting higher.
The price moved above the $500 resistance zone and also spiked above the 23.6% Fibonacci retracement level of the last significant drop from the $879 high to $470 low.
However, the upside move faced sellers near the $600 level and the price retreated below the $580 level. On the upside, there are many resistances aligned near the $600-620 levels. There is also a significant bearish trend line in place with resistance near $630 on the same chart.
Above the trend line, the 50% Fibonacci retracement level of the last significant drop from the $879 high to $470 low is positioned at $674, which is also the previous support area.
Therefore, if bitcoin cash price continues to move higher, it is likely to face sellers near the $620 and $650 resistance levels. Only a close above $675 and the 50-day simple moving average ($710) could open the doors for more gains.
On the flip side, if the price fails to move past the $600. $620 and $650 resistance levels, it may possibly resume its downside move towards the $500 level. In the mentioned case, there are even chances of a fresh yearly low below $470 in the near term.