Key Points
- Bitcoin cash price declined further and traded towards the $1300 support against the US Dollar.
- There is a major bearish trend line forming with resistance around $1475 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might correct higher, but it will most likely face sellers near $1400 and $1460.
Bitcoin cash price declined below $1340 against the US Dollar. BCH/USD is currently under bearish pressure and upsides remain capped by $1400.
Bitcoin Cash Price Upside Hurdles
Due to rise in bitcoin price, there were further declines in bitcoin cash price below $1400 against the US Dollar. The price made a sharp downside move and traded below the $1400 and $1350 support levels. It almost tested the $1300 handle and formed a low near $1308.5. At the moment, a minor consolidation and correction is underway from $1310. On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the $1545 high to $1308 low.
The $1380-1385 zone is a short-term hurdle for buyers. Above the mentioned $1385, the price could test the $1400 resistance. Should there be further gains, the next hurdle is near the 50% Fib retracement level of the last decline from the $1545 high to $1308 low around $1438. There is also a major bearish trend line forming with resistance around $1475 on the hourly chart of BCH/USD. Therefore, there are many hurdles on the upside protecting gains above $1400 in the near term.
On the downside, the recent low of $1308 is a minor support. A break below $1308 could push the price below the $1300 level. The next major support is near the $1250-1260 zone.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is placed well in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is correcting higher from the 30 level.
Major Support Level – $1300
Major Resistance Level – $1400
Charts courtesy – Trading View, Kraken
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