Key Points
- Bitcoin cash price failed to remain above $1,220 and declined against the US Dollar.
- There is a key bearish trend line forming with resistance at $1,225 on the hourly chart of BCH/USD (data feed from SimpleFX).
- The pair may continue to move down and it could trade below the $1,180 and $1,150 support levels.
Bitcoin cash price faced an increased selling pressure below $1,250 against the US Dollar. BCH/USD declined below $1,220 and it remains at a risk of more losses.
Bitcoin Cash Price Decline
There was no upside move above $1,250 in bitcoin cash price yesterday against the US Dollar. The price started a downside move and traded below the $1,240 and $1,220 support levels. The decline gained pace and the price even traded below the $1,200 support level. During the slide, there was a close below the 50% Fib retracement level of the last upside move from the $1,125 low to $1,283 high.
More importantly, there was a close below $1,200 and the 100 hourly simple moving average. It has opened the doors for more losses below the $1,150 level. At the moment, the price is testing the 61.8% Fib retracement level of the last upside move from the $1,125 low to $1,283 high. On the upside, there is a key bearish trend line forming with resistance at $1,225 on the hourly chart of BCH/USD. Therefore, if the price corrects higher, it may face sellers near the $1,220 and $1,225 resistance levels.
On the downside, a break and close below the $1,180 support level could push the price towards $1,150. An intermediate support is near the 76.4% Fib retracement level of the last upside move from the $1,125 low to $1,283 high at $1,162.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.
Major Support Level – $1,150
Major Resistance Level – $1,225
Charts courtesy – SimpleFX