Bitcoin Cash Price Technical Analysis – BCH/USD Remains Bearish

Key Points

  • Bitcoin cash price traded lower sharply and broke the $900 support level against the US Dollar.
  • There is a key connecting bearish trend line forming with resistance at $910 on the hourly chart of the BCH/USD pair (data feed from Kraken).
  • The pair may continue to move down and it could soon test the $850 level in the near term.

Bitcoin cash price is in a bearish trend below $950 against the US Dollar. BCH/USD is likely to extend declines in the short term towards $850 and $800.

Bitcoin Cash Price Resistance

There were continuous declines in bitcoin cash price from the $960 swing high against the US Dollar. The price broke the $950 and $900 support levels to set the pace for more losses. More importantly, the price settled below the $900 level and is currently well below the 100 hourly simple moving average. It recently traded as low as $867 and it may correct a few points in the short term.

An initial resistance is near the 23.6% Fib retracement level of the last decline from the $990 swing high to $867 low. Moreover, there is a key connecting bearish trend line forming with resistance at $910 on the hourly chart of the BCH/USD pair. The same resistance area is positioned around the 38.2% Fib retracement level of the last decline from the $990 swing high to $867 low. Therefore, the price may continue to face sellers if it moves higher from the current levels towards $900 and $910.

Bitcoin Cash Price Technical Analysis BCH USD

On the downside, the recent low at $867 may not hold for long. A break below $867 will most likely call for a push towards the $850 level in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now positioned well below the 40 level.

Major Support Level – $850

Major Resistance Level – $910

 

Charts courtesy – Trading View

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

Source link

Spread the love

Related posts

Leave a Comment