Key Points
- Bitcoin cash price bounced from the $550 low against the US Dollar, but failed to break $620.
- There is a crucial bearish trend line with resistance at $610 forming on the hourly chart of BCH/USD (data feed from Kraken).
- The price is once again testing the $550 support and remains at a risk of a breakdown.
Bitcoin cash price is back to square one against the US Dollar. BCH/USD has to stay above $550 to avoid further declines in the near term.
Bitcoin Cash Price Resistance
Yesterday, we saw how there was a decent support base formed near $550 in Bitcoin cash price against the US Dollar. Later, the price started a recovery from the $550 low and managed to crawl above the 23.6% Fib retracement level of the last fall from the $720 high to $550 low. It was an initial positive signs and helped buyers in taking the price above the $600 level.
There was a huge spike in the price towards $620 where it faced sellers. A crucial bearish trend line with resistance at $610 on the hourly chart of BCH/USD protected gains. Moreover, the 38.2% Fib retracement level of the last fall from the $720 high to $550 low also acted as a resistance. The pair failed to break $620, faced heavy offers and moved down. As a result, there was a false spike formed and the price is currently bank trading near $550. The mentioned $550 support is a major horizontal pivot.
The price has to remain above the stated level or there are chances of further losses towards $520. If sellers remain in action, the price could even test $500.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is almost flat with no real momentum.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is heading lower towards 40 level.
Major Support Level – $550
Major Resistance Level – $610