Bitcoin Cash Analysis: Bulls Eye Upside Break above $500

Bitcoin cash price is recovering from the $400 support zone against the US Dollar.
The price is still well below $550 and the 55 simple moving average (4-hours).
There is a major bearish trend line forming with resistance near $500 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
The pair could start a major increase if it clears the $500 resistance and then the 55 SMA.

Bitcoin cash price is slowly moving higher above $450 against the US Dollar, similar to bitcoin. BCH/USD could recover further if it breaks the $500 barrier.

Bitcoin Cash Price Analysis

There was a major decline in bitcoin cash price from well above the $600 level. BCH broke the $500 support level and the 55 simple moving average (4-hours) to move into a bearish zone.

There was also a break below the $400 level. The price traded as low as $388 and it recently started an upside correction. There was a break above the $450 level. The price traded above the 23.6% Fib retracement level of the key decline from the $650 swing high to $388 low.

The price even climbed above the $480 level. However, it failed to clear the $500 resistance level. There is also a major bearish trend line forming with resistance near $500 on the 4-hours chart of the BCH/USD pair.

The next major resistance is near the $540 level and the 55 simple moving average (4-hours). If there are more gains, the price could even surpass the $550 barrier in the near term. The next major resistance is near the $600 level.

An initial support on the downside is near the $480 level. The next major support is near the $450 level, below which bitcoin cash price could dive towards the $420 level. Conversely, a clear break above $500 is must to start a steady increase towards $550 or even higher.

Looking at the chart, bitcoin cash price is clearly trading below $550 and the 55 simple moving average (4-hours). Overall, the price could start a major increase if it clears the $500 resistance and then the 55 SMA.