- Bitcoin Cash price upswing is inhibited the upper trendline of a descending parallel channel.
- Support at $451 must hold to avoid losses to $400.
Bitcoin cash price bounced off a powerful resistance at $510 at the beginning of the week to start a massive decline downwards. The upper boundary of the descending parallel channel reinforced the downswing, leading to losses at $443. A continued price action below the channel’s upper boundary will bolster BCH downwards $440. The asset has tested a new support level just above $440 as bulls aim for a crucial comeback.
Bitcoin Cash Technicals Point to a Continued Downswing
At press time, Bitcoin Cash price was hovering around $462 after holding support at $443. However, recovery towards the $500 might be derailed due to lack of enough bullish pressure. Immediate resistance is provided by the upper boundary of the descending channel at around $465. The Moving Average Convergence Divergence (MACD) indicator confirms the continued assault of the BCH by the bears according the four-hour chart.
If the resistance at $465 remains intact, Bitcoin Cash price will continue reversing the gains seen earlier on Wednesday towards losses below $440 if this happens, crypto brokers are likely to continue receiving BCH sell orders amidst FUD on record lows.
Bitcoin Cash Price (BCH/USD) Four-Hour Chart
The IOMAP Model Reveals Seller Congestion in the Market
On-chain metrics from IOMAP model by IntoTheBlock reveal the presence of seller congestion at $494-%508. Nearly 465,000 BCH were previously bought by 224,000 addresses. As Bitcoin Cash bulls aim for a breakout through the descending parallel channel towards $500, sellers at this level drown most of the bullish pressure, leaving buyers gasping for breath. Other key resistances are expected in the ranges of $468 to $481 and between $481 to 494.
Looking the Over Other Side
The IOMAP model also reveals that the support levels that the Bitcoin cash price is currently sitting on relatively weak. This means that a slight push downwards could continue the bearish leg reversing the recent attempts by bulls to keep the price above $400.
However, the zone between $438 and $451 where approximately 89,000 addresses have previously bought around 136,000 BCH provides immediate credible support. Note that a Bitcoin Cash price closure below this zone may validate the continued downtrend as $400 beckons.
Note that a four-hour candlestick closure above the $451 support will bolster the BCH price to gain stability. This will allow bulls to refocus on reversing the losses towards $500. Beyond this area, bulls appear to target $540 before making a shot at $600.
It is important to know when the reversal is solidified in order not to miss out on the BCH bullish run. Join one of the crypto signals telegram groups to know when this happens.
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Nancy Lubale
