Key Points
- Bitcoin cash price declined further and tested the $410-405 support zone against the US Dollar.
- There are two bearish trend lines forming with resistance near $420 on the hourly chart of BCH/USD (data feed from Kraken).
- The price has to clear the $420-424 resistance zone to start an upside move in the near term.
Bitcoin cash price is struggling to gain bids against the US Dollar. BCH/USD is now eyeing an upside break above $420 to gain momentum.
Bitcoin Cash Price Upside Hurdle
Yesterday, we saw a major hurdle for Bitcoin cash price near $425 against the US Dollar. The price failed to break the stated $425 resistance area and declined. A low was formed below the $410 support as the price traded towards the $405 level. The downside was limited as the price started a correction after trading as low as $405.5. It broke the 23.6% Fib retracement level of the last decline from the $454 high to $405 low.
However, any further gains above $420-425 won’t be easy. There are two bearish trend lines forming with resistance near $420 on the hourly chart of BCH/USD. These trend lines near $420-425 might continue to stop upsides. The 38.2% Fib retracement level of the last decline from the $454 high to $405 low is also at $423 to act as a resistance. The most important resistance on the upside remains at $430-431. It is now close to the 50% Fib retracement level of the last decline from the $454 high to $405 low.
As long as the price is below $430, it might continue to range trade with a minor bearish bias.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is struggling to remain in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now just above the 50 level.
Major Support Level – $405
Major Resistance Level – $425-430
Charts courtesy – Trading View, Kraken
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
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