Key Points
- Bitcoin cash price failed to hold an important support area at $440 against the US Dollar.
- This week’s highlighted bullish trend line with support at $440 was broken on the hourly chart of BCH/USD (data feed from Kraken).
- The price is currently below a bearish trend line with current resistance at $445.
Bitcoin cash price is correcting lower against the US Dollar. BCH/USD might retest $420-410 before it bounces back above $445-450.
Bitcoin Cash Price Correction
Yesterday, we saw how there was a tiny correction initiated in Bitcoin cash price towards $450 against the US Dollar. We also saw a bullish trend line with support at $440 on the hourly chart of BCH/USD. However, the pair failed to hold the highlighted trend line support at $440 and declined towards $420. The downside move was limited, but we cannot discard the fact that there was a break of the trend line support at $440.
At present, the pair is recovering, but facing resistance near the 23.6% Fib retracement level of the last decline from the $520 high to $417 low. Moreover, there is a key bearish trend line forming with current resistance at $445. A break above the $445-450 resistance is required for BCH to overcome any increase in bearish sentiment. Should there be a break above $450, the price might test the 50% Fib retracement level of the last decline from the $520 high to $417 low.
On the downside, the $420 support remains a major buy zone. As long as the pair is above $420-400, it remains supported despite the current correction and resistance at $450.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is not showing any major bearish signs at the moment.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just around 50 and heading north with positive signs.
Major Support Level – $420
Major Resistance Level – $450
Charts courtesy – Trading View, Kraken
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