Key Points
- Bitcoin cash price extended its decline and even broke the $380 support area against the US Dollar.
- This week’s highlighted two bearish trend lines with current resistance near $380 on the hourly chart of BCH/USD (data feed from Kraken) are intact.
- The price is likely to decline further and it could even test the $320 level in the near term.
Bitcoin cash price fell sharply below $400 against the US Dollar. BCH/USD is about to decline further and it could soon break $340.
Bitcoin Cash Price under Heavy Pressure
There were further declines in Bitcoin cash price as it failed to stay above the $400 support against the US Dollar. The price broke yesterday’s low of $392 and was even able to clear the $380 support. There was a sharp selloff and the price declined below the $350 level. A low was formed at $346.8 from where the price is currently attempting a tiny recovery.
An initial hurdle on the upside is near the 23.6% Fib retracement level of the last drop from the $405 high to $346 low. The most important point is the fact that this week’s highlighted two bearish trend lines with current resistance near $380 on the hourly chart of BCH/USD are still in place. It seems like the price won’t be able to move above the 38.2% Fib retracement level of the last drop from the $405 high to $346 low. It is poised for more losses below $360.
There are high chances of it breaking the recent low of $346. The next major support is around the $320 level where buyers might emerge.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently recovering, but likely to stay in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well into the oversold levels.
Major Support Level – $320
Major Resistance Level – $380
Charts courtesy – Trading View, Kraken
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
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