- Bitcoin Cash spikes 1% on a daily basis but fails to break past $560 resistance.
- Several support areas to stop declines if the reversal extends declines towards $500 lifeline support.
Bitcoin Cash was preparing to retest $600 if it were not for the bear pressure at $560. The digital asset embarked on a sole journey upwards a couple of weeks ago amid increasing selling pressure in the market. However, BCH/USD lost momentum on trading highs around $606 and about-turned below $600. It has been trading lower highs and lower lows below the trendline resistance.
Bitcoin Cash has had a couple of lifeline support areas at $510 and $500. The trend has been sideways in the past one week with the upside capped at $540. The uptrend initiated yesterday used the support at $520 and the simple moving average support at the 23.6% Fib retracement level of the last drop from $581.91 and a low of $510.13.
The bullish engulfing candle spiked above the multi-week trendline resistance at $532.36. Bitcoin Cash made above $540 and stepped above $550. It changed hands briefly above the 61.8% Fib level but lower corrections are currently testing the short-term support at $550.
On the upside, $560 is in sight, however, the trend has turned bearish the time of press. The stochastic has changed direction although it is still in the overbought. Bitcoin Cash buyers must find a support above $550 to stay away from declines that would trim the gains accrued since yesterday. Several support areas are highlighted on the hourly chart at $540, $530 and $520.
BCH/USD 1-hour chart
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