Key Points
- Bitcoin cash price failed to stay above the $2500 and $2600 support levels against the US Dollar.
- There was a break below a key bullish trend line with support at $2520 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair might extend its decline and it could even trade towards the $2300 support area.
Bitcoin cash price struggled and moved below $2500 against the US Dollar. BCH/USD could trade further lower and test the $2300 support.
Bitcoin Cash Price Decline
There was a pause in the bounce near $2700 in bitcoin cash price against the US Dollar. The price failed to stay above the $2700 level and started a downside move. It declined and broke the $2600 and $2500 support levels. During the decline, there was a break below a key bullish trend line with support at $2520 on the hourly chart of BCH/USD.
The pair is currently trading around $2450 and is attempting a close below the 100 hourly simple moving average. Should there be a close below $2450 and the 100 hourly SMA, the price could extend declines. The next major support on the downside is around $2300 followed by $2280. On the upside, an initial resistance is around the 23.6% Fib retracement level of the last drop from the $2730 high to $2417 low. However, the most important hurdle is close to the $2550 level and the broken trend line.
If there is a short-term correction, the $2550 and $2600 levels are likely to prevent gains. The 50% Fib retracement level of the last drop from the $2730 high to $2417 low is near $2570 to act as a major barrier. Therefore, there can be more slides towards the $2300 support.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 50 level.
Major Support Level – $2300
Major Resistance Level – $2550
Charts courtesy – Trading View, Kraken
