Key Points
- Bitcoin cash price failed to move above the $1,650 resistance and declined sharply against the US Dollar.
- There is a key bearish trend line forming with resistance at $1,640 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair has to stay above the $1,500 and $1,480 support levels to avoid more declines.
Bitcoin cash price trimmed yesterday’s gains against the US Dollar. BCH/USD is now back below $1,600 with a few bearish signs near $1,520.
Bitcoin Cash Price Support
There were a couple of attempts by bitcoin cash price to break the $1,650 resistance against the US Dollar. The price failed to move above $1,650 and started a downside move. It declined sharply and trimmed most its yesterday’s gains. During the decline, it broke the $1,600 and $1,550 support levels to settle below the 100 hourly simple moving average.
It even spiked below the $1,500 support level and traded as low as $1,482. At the moment, it is consolidating losses around the 23.6% Fib retracement level of the last drop from the $1,664 high to $1,482 low. On the upside, there are many hurdles for buyers near $1,580 and the 100 hourly SMA. The 50% Fib retracement level of the last drop from the $1,664 high to $1,482 low is at $1,573 to act as a key resistance. Moreover, there is also a key bearish trend line forming with resistance at $1,640 on the hourly chart of the BCH/USD pair.
Looking at the chart, it seems like the price may correct higher, but it may struggle to move above $1,580 and $1,600. On the downside, $1,500 and $1,480 levels are important supports. A break below $1,480 may push the price back towards $1,450.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is now back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is near the oversold readings.
Major Support Level – $1,480
Major Resistance Level – $1,580