Key Points
- Bitcoin cash price continued to correct lower and moved below the $1500 support against the US Dollar.
- There is a major bearish trend line forming with resistance near $1480 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might extend its decline and it could even break the $1400 support in the near term.
Bitcoin cash price is moving lower towards $1400 against the US Dollar. BCH/USD might extend declines and remains at risk of more losses.
Bitcoin Cash Price Correction
Yesterday, we saw the start of a downside correction below $1600 in bitcoin cash price against the US Dollar. The price continued to correct lower and it recently moved below the $1500 support area. There was a break of the 61.8% Fib retracement level of the last upside wave from the $1148 low to $1750 high. It has opened the doors for more declines since the price is now below $1500.
At present, the price is trading near $1450 and remains at a risk of more declines. The next major support is near the $1400 level, which might attempt to protect further slides. On the upside, there is a major bearish trend line forming with resistance near $1480 on the hourly chart of BCH/USD. The pair might fail to break the trend line and the 23.6% Fib retracement level of the recent drop from the $1718 high to $1450 low. Above the trend line resistance, the $1550 level is a crucial resistance.
The mentioned $1550 resistance is close to the 38.2% Fib retracement level of the recent drop from the $1718 high to $1450 low. The overall trend is short-term bearish with chances of a test of $1400.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has moved into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is reaching the 20 level.
Major Support Level – $1400
Major Resistance Level – $1500
Charts courtesy – Trading View, Kraken
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