Bitcoin cash price is under a lot of pressure below the key $420.00 support. BCH could decline heavily if it clears the main $390.00 support area in the coming sessions.
- Bitcoin cash price is struggling to recover above the $420.00 and $425.00 resistances.
- BCH is facing a short term bearish trend line with resistance near $410.00 on the 2-hours chart.
- A downside break below the $390.00 support could spark a lot of bearish moves in the near term.
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Bitcoin Cash Price Analysis (BCH to USD)
In the past few sessions, bitcoin price failed to recover above the key $11,400 and $11,500 resistance. BTC is now trading well below the $11,000 level, putting a lot of pressure on altcoins such as BCH, Ethereum, ripple, EOS and cardano.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair recovered recently, but the $450.00 level acted as a strong resistance. The pair topped near the $450.02 level and recently declined below the $425.00 support area.
There was also a close below the $420.00 level and the 25 simple moving average (2-hours). The price is currently trading below the $400.00 handle and is testing the main $390.00 support area.
If there is a downside break below the $390.00 support, there could be a lot of bearish moves in bitcoin cash in the near term. The next key support is near the $375.00 level, below which the price could extend losses towards the $360.00 support.
On the upside, an initial resistance is near the $408.00 level and the 23.6% Fib retracement level of the recent drop from the $450.02 high to $395.72 low.
Besides, the price is facing a short term bearish trend line with resistance near $410.00 on the same chart. Above $400.00, the price could test the 50% Fib retracement level of the recent drop from the $450.02 high to $395.72 low at $422.80.
The 25 simple moving average (2-hours) is also near the $422.00 level to act as a resistance. A successful close above the $422.00 and $425.00 levels is needed for a decent rebound in bitcoin cash in the near term. If not, there is a risk of a downside break below $390.00 and $375.00.
The market data is provided by TradingView, Coinbase.