Key Points
- Bitcoin cash price struggled to settle above the $900 level and declined against the US Dollar.
- There is a major bearish trend line formed with resistance at $850 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently finding it hard to hold an important support area near $825.
Bitcoin cash price started a downside move after it was rejected from $900 against the US Dollar. BCH/USD must stay above $825 to avoid a bearish break.
Bitcoin Cash Price Trend
There was a recovery initiated in bitcoin cash price from the $799 low against the US Dollar. The price climbed above the $840 and $850 resistance levels to start a recovery. It even traded a few points above the $900 level before sellers appeared. There was no close above the $900 resistance, which resulted in a bearish reaction. BCH price declined sharply and moved below the $850 support area.
There was also a break below the 50% Fib retracement level of the last wave from the $799 low to $910 high. The downside move was such that the price closed below the $840 level and the 100 hourly simple moving average. At the moment, the price is holding an important support level at $825. It also coincides with the 76.4% Fib retracement level of the last wave from the $799 low to $910 high. Should there be a downside break below $825, the price may come under a lot of pressure. On the upside, there is a major bearish trend line formed with resistance at $850 on the hourly chart of the BCH/USD pair.
Looking at the chart, the pair is clearly at a risk of a downside break below $825 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 50 level.
Major Support Level – $825
Major Resistance Level – $850