Bitcoin Cash Price Outlook 📉
If you’re following Bitcoin Cash, you may have noticed a recent drop in its price below the $440 support level. The price is currently trading under $440 and the 100 simple moving average (4 hours). This downward trend has led to the formation of a key bearish trend line with resistance at $438 on the 4-hour chart of the BCH/USD pair from Kraken data feed.
Bitcoin Cash Price Revisits Support 🔄
Over the past few days, Bitcoin Cash has seen a steady decline similar to Bitcoin and Ethereum. This decline pushed BCH below key support levels at $450 and $440, shifting it into a short-term bearish zone. After reaching a low point at $421, the price is currently consolidating losses, with a minor rebound above the $430 level. The price managed to surpass the 23.6% Fib retracement level of the recent downward movement from the $457 high to the $421 low.
The immediate resistance lies near the $438 level, where a crucial bearish trend line is forming on the 4-hour chart of the BCH/USD pair. This trend line aligns with the 50% Fib retracement level of the decline from $457 to $421. If the price breaks above the $440 resistance, it could see a significant uptrend, aiming for $450 and potentially $465 thereafter.
Fresh Drop in BCH? 📉
If Bitcoin Cash fails to break above the $438 resistance level, it might experience another drop in price. The initial support is expected near $425, followed by a major support level at $420. However, if the price falls below $420, it could test the $400 zone, with further declines possibly leading to the $384 support level in the short term.
Technical Indicators 📊
As for the technical indicators, the 4-hour MACD for BCH/USD is displaying signs of a slowdown in the bearish zone. Meanwhile, the 4-hour RSI (Relative Strength Index) is currently hovering around the 50 level.
Key Support Levels: $425, $420
Key Resistance Levels: $440, $450
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