Key Points
- Bitcoin cash price failed to break the $530 resistance and declined against the US Dollar.
- Yesterday’s highlighted ascending channel was breached with support at $521 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently below the $520 support and it could decline further in the near term.
Bitcoin cash price struggled to break the $530 and $540 hurdles against the US Dollar. BCH/USD is likely to retest the $500 support if sellers remain in action.
Bitcoin Cash Price Analysis
Yesterday, we discussed a possible upside break above the $530 resistance in bitcoin cash price against the US Dollar. However, the BCH/USD pair failed to clear the $530 resistance level and started a fresh decline. During the downside, it broke the $525 support level. It also cleared the 50% Fib retracement level of the last wave from the $500 swing low to $530 high.
Moreover, yesterday’s highlighted ascending channel was breached with support at $521 on the hourly chart of the BCH/USD pair. The pair is currently trading below the $520 support and the 100 hourly simple moving average. An immediate support is near the $510 level. It represents the 61.8% Fib retracement level of the last wave from the $500 swing low to $530 high. Below the $510 support, the price is likely to accelerate declines towards the $505 and $500 support levels. On the other hand, if there is an upside move, the price may struggle near the $520 level. Above this, the $530 resistance could be retested.
Looking at the chart, BCH price seems to be forming a broad range above the $500 support. It could continue to move inside a range before breaking to the upside above $530.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 50 level.
Major Support Level – $500
Major Resistance Level – $530