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Bitcoin Cash Price Analysis: Can BCH/USD Hold $1000?

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Bitcoin cash price after trading above the $3000 level against the US Dollar (tethered) found strong offers. BCH/USD is now holding an important support at $1000.

Key Talking Points

  • Bitcoin cash price made a sharp upside move above the $3000 level against the US Dollar (tethered) before trimming all gains.
  • There is a major bullish trend line forming with support at $1000 on the 4-hours chart of the BCH/USD pair (data feed from Poloniex).
  • The pair must stay above the $1000 level if it has to move back higher in the near term.

Bitcoin Cash Price Chart Analysis

There were nasty gains in bitcoin cash price during the past 5-6 sessions toward $3000 against the US Dollar (tethered, data feed by Poloniex). The price traded to a new all-time high of $3121 before it faced a strong sell wall.

Later, the price declined sharply and trimmed almost all of its gains by moving below $2000 and $1500. There was a break of the 50% Fibonacci retracement level of the last wave up from the $560 low to $3121 high.

bitcoin cash price chart
Cryptocurrency charts and prices provided by TradingView

There was a test of a major bullish trend line with support at $1000 on the 4-hours chart of the BCH/USD pair. The pair held the trend line support, but struggling to remain above the 76.4% Fibonacci retracement level of the last wave up from the $560 low to $3121 high.

Therefore, the trend line support holds a lot of importance for more declines below $1000. As long as BCH/USD is above $1000, there is a chance of it recovering back toward $1400 or $1500.

On the other hand, if it fails to hold $1000, it could trade toward the $800 support area. In the mentioned scenario, there is even a possibility that the price might test the $650 support as well.

The overall trend is now bearish unless BCH moves back above $1500. The 4-hour RSI for BCH/USD is now below 50 and heading south, which means more losses are possible.

Trade safe traders and do not overtrade!

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