Key Points
- Bitcoin cash price declined heavily and traded below the $300 and $280 levels against the US Dollar.
- Yesterday’s highlighted key bearish trend line is intact with resistance at $315 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently trading near the $250 level and it could decline further towards $220.
Bitcoin cash price is under heavy selling pressure against the US Dollar. BCH/USD could continue to move down and it may test the $220 level in the near term.
Bitcoin Cash Price Analysis
Yesterday, we discussed how there was an increase in selling pressure below $300 in bitcoin cash price against the US Dollar. The BCH/USD pair declined heavily and broke the $280 and $260 support levels. It is now trading well below the $300 level and the 100 hourly simple moving average. The recent decline was such that the price even broke the $250-255 support area and formed a low at $249.
At the moment, the price is consolidating losses near $260 with bearish moves. An initial resistance is the 23.6% Fib retracement level of the recent decline from the $379 high to $249 low. Above $280, the price could test the $300 level, which is a major resistance. More importantly, yesterday’s highlighted key bearish trend line is intact with resistance at $315 on the hourly chart of the BCH/USD pair. The trend line coincides with the 50% Fib retracement level of the recent decline from the $379 high to $249 low.
Looking at the chart, BCH price is clearly in a major downtrend below $280 and $300. There could be a minor recovery, but later the price is likely to resume decline. The next main support for buyers is near $220 followed by $200.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently near the 40 level.
Major Support Level – $250
Major Resistance Level – $300