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.
- 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.
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.
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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