Bitcoin cash price rebounded nicely and traded above the $388.00 and $400.00 levels. BCH towards the $430.00 level and it is currently correcting lower. Dips remain supported near $385.00 and $374.00.
- Bitcoin cash price traded as high as $434.43 and recently corrected lower.
- BCH is trading inside a major contracting triangle with support near $380.00 on the 2-hours chart.
- The price could either climb back above $410.00 or break below $380.00 for further declines.
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Bitcoin Cash Price Analysis (BCH to USD)
After testing the $335.00 support area, bitcoin cash price started a solid upward move. BCH climbed above the $374.00, $388.00 and $400.00 resistance levels. It traded as high as $434.43 before starting a fresh downside correction.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair clearly struggled near the $430.00 resistance area and it is currently moving lower. It broke the $410.00 support level and the 23.6% Fib retracement level of the recent wave from the $337.13 swing low to $434.43 high.
On the downside, there is a strong support forming near the $380.00 and $385.00 levels. There is also a major contracting triangle in place with support near $380.00 on the same chart.
Moreover, the 50% Fib retracement level of the recent wave from the $337.13 swing low to $434.43 high is also near the triangle support to hold losses.
If bitcoin cash price fails to stay above the triangle support and $380.00, there is a risk of a fresh decline towards the $360.00 or $350.00 support levels. Conversely, if the price stays above the $380.00 support, it could bounce back.
On the upside, an initial resistance is near $410.00, above which the price might attempt to climb above the triangle resistance at $424.00. Having said that, a convincing break above the $430.00 barrier is must for uptrend continuation.
Overall, bitcoin cash is approaching the key support area at $380.00 and it could either bounce back or continue lower towards the $360.00 support. The main support in the mentioned bearish scenario is at $340.00, below which BCH might move into a negative zone.
The market data is provided by TradingView, Coinbase.
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