Today marks the new starting or the end of Bitcoin cash assuming Craig Wright wins the hash rate game and mine empty blocks before Roger Ver mining pools. The BCH/USD pair did move down and broke the $500 and $480 support levels. The decline was nasty as the price dropped by around $100 and traded close to the $400 support. A new low was formed at $404 and the price is currently consolidating losses. It has more chances of declines below the $500 support in bitcoin cash price against the US Dollar.
An initial resistance on the upside is $435. It represents the 23.6% Fib retracement level of the recent decline from the $538 high to $404 low. At the moment, it seems like a decent recovery is very unlikely above $435 and $440. Above $440, there is a major bearish trend line in place with resistance at $470 on the hourly chart of the BCH/USD pair. It also coincides with the 50% Fib retracement level of the recent decline from the $538 high to $404 low. On the other hand, if the price continues to move down, it could break the $400 support.
BCH/USD Price Analysis :
Bitcoin cash price declined heavily below $450 against the US Dollar. BCH/USD tested the $400 support and it is currently consolidating losses.
Bitcoin cash price crashed and declined more than $100 towards the $400 level against the US Dollar.
There is a major bearish trend line in place with resistance at $470 on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair is currently consolidating above the $400 level and it could correct a few points in the near term.
In an announcement, the pool created it clear that they shall use private hash rate to perhaps save the network by mining BCHABC however normal payout in BTC, BCH or otherwise can continue as normal. It seems that Bitcoin.com can force miners to channel their hash rate to BCH and later compensate them. however if payments are created in Bitcoin, BCH owners can need to deal with losses as a result of it means that either the pool would need to sell BCH for BTC or use their own BTC.
From a risk-reward purpose of view, it won’t be for traders even conservative or aggressive to sell BCH/USD at this level. Prices are $34 from the main sell trigger line and support at $400. But, from previous BCH/USD trade plan, patience means holding off until prices race below $400 or erupt above $600 in a break out trade confirming or nullifying break out the pattern of early August. Either way, first targets will be $300 or $850.