Key Points
- Bitcoin cash price declined further and breached a key support at $2450 against the US Dollar.
- Yesterday’s highlighted important bullish trend line with support at $2480 was broken on the hourly chart of BCH/USD (data feed from Kraken).
- The pair might continue to decline since it is now below $2400 and the 100 hourly simple moving average.
Bitcoin cash price moved below the $2450 support against the US Dollar. BCH/USD could decline further toward the $2300 and $2200 levels.
Bitcoin Cash Price Resistance
There was no upside recovery in bitcoin cash price yesterday from the $2600 swing low against the US Dollar. The price traded lower and sellers succeeded in breaking a key support area at $2450. During the downside move, many important supports including $2400 and the 100 hourly simple moving average were broken. There was also a break below the 50% Fib retracement level of the last upside leg from the $2218 low to $2780 high.
It opened the doors for more losses and yesterday’s highlighted important bullish trend line with support at $2480 was broken on the hourly chart of BCH/USD. The pair is now below the $2400 support and is eyeing more declines in the near term. On the upside, there is a bearish trend line forming with resistance at $2400. Moreover, the 23.6% Fib retracement level of the last decline from the $2780 high to $2348 low is near $2450.
Moreover, the 100 hourly SMA is at $2450. Therefore, it seems like there is a major resistance forming near $2400-2450. There are chances of more declines in BCH in the short term toward $2200 as long as it is below $2450.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is now moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently below the 40 level and is showing bearish signs.
Major Support Level – $2200
Major Resistance Level – $2450
Charts courtesy – Trading View, Kraken
