Key Points
- Bitcoin cash price is declining and is currently trading below $1500 against the US Dollar.
- There is a major bearish trend line forming with resistance at $1400 on the hourly chart of BCH/USD (data feed from Kraken).
- The price remains in the bearish zone as long as there is no break of the $1500 resistance.
Bitcoin cash price is now trading below $1500 against the US Dollar. BCH/USD is under pressure and might test the $1050 support in the short term.
Bitcoin Cash Price Resistance
Yesterday, we saw a reversal pattern in Bitcoin cash price as it moved below the $1800 level against the US Dollar. The price traded toward the $1050 support and later corrected higher. It moved above the 23.6% Fib retracement level of the last decline from the $2580 high to $1012 low. However, the upside move was limited by the $1500 resistance. There is also a major bearish trend line forming with resistance at $1400 on the hourly chart of BCH/USD.
Above the trend line resistance, the 38.2% Fib retracement level of the last decline from the $2580 high to $1012 low is at $1614. Therefore, there are many resistances on the upside starting with the $1400 level. It won’t be easy for BCH buyers to push the price above $1400 and $1500 in the short term. There can be a couple of swing moves or ranging moves below $1500. Moreover, there is a chance of it retesting the $1050-1000 support area as well in the near term.
Loses below $1000 would mean a major bearish trend toward $650-600. On the upside, a close above $1500 would be a positive signal for buyers.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is attempting to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently below the 50 level.
Major Support Level – $1050
Major Resistance Level – $1500
Charts courtesy – Trading View, Kraken
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