Bitcoin Cash Price Prediction: Sell BCH On Rallies Near $625-640

Published August 9, 2018 | Updated August 26, 2018

Bitcoin Cash Price Prediction: Sell BCH On Rallies Near $625-640

Bitcoin cash price plummeted below the $675 and $600 supports against the US Dollar. BCH/USD is recovering from $566, but it remains to sell on rallies near $625-640.

Key takeaways

  • Bitcoin cash came under a lot of selling pressure after it broke the $680 support. 
  • BCH/USD settled below a declining channel with support near $640 on the 4-hours chart.
  • The BCH/USD pair remains to sell on rallies if it recovers above the $620 level.

Bitcoin Cash price analysis

The past few days were very bearish on bitcoin cash as it declined heavily after forming a top near the $840 level. BCH/USD collapsed and dropped more than $250 during the past few days.

The 4-hours chart of BCH/USD indicates that the price followed a declining pattern from well above the $800 level and declined below the $750, $700, $680 and $650 support levels.

bitcoin cash
Chart sourced by TradingView, Binance

The decline was such that the price even broke the $600 support area. More importantly, there was a break below a declining channel with support near $640 on the 4-hours chart.

It opened the doors for more losses in BCH and the price tumbled toward the $550 level. A new monthly low was formed at $566.63 before the price found bids. At the outset, the price is correcting higher and is testing the 23.6% Fibonacci retracement level of the last downward move from the $716.84 swing high to $566.63 low.

Should the price correct above the $600 and $605 resistance levels, it could spike towards the $625 level. However, the price is likely to face a strong resistance near $625, the broken channel, and $641.

The $641 resistance represents the 50% Fibonacci retracement level of the last downward move from the $716.84 swing high to $566.63 low. Therefore, upsides in bitcoin cash price above $610 are likely to be capped by the $625 and $641 resistance levels.

On the downside, an initial support is near the recent low at $566.63, below which, sellers could make an attempt to push the price towards the all-important $500 handle. Technically, indicators like RSI and squeeze momentum indicator are pointing no substantial recovery sign. 

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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Sunil Sharma 192 Articles
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
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