Bitcoin cash price is holding an important support near $1,485. However, BCHUSD has to move above the $1,700 and $1,800 resistance levels to initiate a new upside wave.
The current price structure is bearish on the short term, but the $1,485 and $1,350 support levels hold a lot of significance.
Key Findings:
- The last decline in bitcoin cash price was protected by the $1,485 support level.
- There is a breakout pattern forming with resistance near $1,700, and support near $1,500 on the 4-hour chart of BCHUSD (data feed via Bitfinex).
- The pair has to move above $1,700 and $1,800 to gain upside momentum.
Bitcoin cash price to accelerate declines?
During the previous analysis, we discussed the chances of more declines in bitcoin cash price below $1,800. The BCHUSD pair did move down below the $1,600 price level, but major support near $1,485 prevented further losses.
There were two attempts to break through the aforementioned $1,485 support level, but sellers failed to push price below it. As a result of two rejections around $1,485, price moved higher and traded above the 23.6% Fibonacci retracement level of the last leg extending between the high at $2,116, and the low at $1,485.
There was a push toward $1,800 and price climbed above the 21 period simple moving average (SMA) on the 4 hour chart. However, the upside move stalled near $1,780-$1,800.
It seems like there is a breakout pattern (contracting triangle) forming with resistance at $1,700 and support at $1,500 on the 4 hour BCHUSD chart. The pair must settle above the triangle's resistance ($1,700), and the 21 period SMA to gain upside momentum.
Above $1,700, the next crucial barrier for buyers lies around $1,800. The stated $1,800 level is close to the 50% Fibonacci retracement level of the last leg that we outlined earlier. Further above $1,800, the gates could open for a push toward $2,000.
On the flip side, if the pair fails to move above $1,700, there may possibly be a downside reaction toward $1,500. Below $1,500, bears could target the last swing low of $1,351.
In the short term, BCHUSD may trade in a range above $1,500 before making the next move.