- Bitcoin Cash is facing significant resistance at $540, but the downside is well protected above $500.
- The hourly simple moving averages are offering immediate support around $525.
Bitcoin Cash made a tremendous recovery at the beginning of last week where it traded above $600. However, the bulls appear to have lost their mojo along that week, besides the last weekend trading shows that the upside is capped at $540. The crypto is range bound with the lower limit at $510. The upside is also limited by the trendline resistance as seen on the hourly BCH/USD chart.
The price corrected higher during the Asian trading hours on Monday 27 but on stepping above $530 it starting to reverse the trend as the bears increased their grip. Bitcoin Cash is currently trading at $526. The 23.6% Fib level support has given in to the bear pressure but marginally below this level both the 50 SMA and the 100 SMA are offering additional support. Significantly a stronger support is available at $520 while the primary support is highlighted at $510.
Even though, Bitcoin Cash recovery above $600 was short-lived, the crypto is still strongly supported above $500. However, it is important that the buyers curve another path upwards by finding support above the critical resistance at $540. At the moment, the sellers do not have complete influence on the price, therefore this is an opportunity for buyers entry, besides the MACD is neither on the positive or the negative zones.
BCH/USD 1-hour chart