Key Points
- Bitcoin cash price failed to move above the $1,700 resistance and declined against the US Dollar.
- Yesterday’s highlighted connecting bearish trend line with current resistance at $1,630 prevented gains on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may continue to move down and it could even break the $1,550 support in the near term.
Bitcoin cash price is moving down once again against the US Dollar. BCH/USD could extend its decline towards the $1,485 level if sellers remain in control.
Bitcoin Cash Price Upside Hurdle
Yesterday, we discussed an upside correction above $1,650 in bitcoin cash price against the US Dollar. The price did move higher, but it failed to gain momentum above the $1,700 resistance. Sellers defended gains above the stated $1,700 and pushed the price back below the 100 hourly simple moving average. There was also a failure to break the 50% Fib retracement level of the last drop from the $1,835 high to $1,565 low.
More importantly, yesterday’s highlighted connecting bearish trend line with current resistance at $1,630 prevented gains on the hourly chart of the BCH/USD pair. The pair is currently under pressure and it broke the $1,600 support level. Additionally, it is about to break the $1,565 low, which could open the doors for more losses. The next stop for sellers could be the 1.618 Fib extension of the last wave from the $1,568 low to $1,701 high at $1,485. An intermediate support is at $1,536, which is the 1.236 Fib extension of the same wave.
Looking at the chart, the price is clearly under pressure below $1,600. If there is an upside correction, the $1,600 and $1,620 levels are likely to prevent gains.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving lower below the 40 level.
Major Support Level – $1,485
Major Resistance Level – $1,630