Key Points
- Bitcoin cash price remained under pressure and moved below the $1200 support against the US Dollar.
- There are two main bearish trend lines forming with resistance at $1250 and $1430 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might move a few points higher, but it remains in downtrend as long as it is below $1400.
Bitcoin cash price struggled further below $1200 against the US Dollar. BCH/USD remains in a downtrend and it might continue to face sellers.
Bitcoin Cash Price Decline
There were non-stop gains in BTC/USD, which pushed bitcoin cash price below the $1200 support against the US Dollar. The price made a minor correction, faced sellers near $1400 and started a fresh downside move. It failed to move above the 38.2% Fib retracement level of the last drop from the $1550 high to $1300 low. The recent decline was such that the price broke the $1300 low and even cleared the $1200 support.
A new low was formed at $1150.10 from where the price is currently correcting. An initial resistance is around the 23.6% Fib retracement level of the last decline from the $1470 high to $1150 low. On the upside, there are two main bearish trend lines forming with resistance at $1250 and $1430 on the hourly chart of BCH/USD. The first trend line is also near the 38.2% Fib retracement level of the last decline from the $1470 high to $1150 low.
Therefore, the $1250 level and the $1300 handle are likely to act as a major barrier for a recovery. The most important resistance on the upside remains at $1400 and the 100 hourly simple moving average.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now near the oversold levels.
Major Support Level – $1150
Major Resistance Level – $1250
Charts courtesy – Trading View, Kraken
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