Key Points
- Bitcoin cash price traded further lower and tested the $2300 support area against the US Dollar.
- There is a new connecting bearish trend line forming with resistance at $2450 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair needs to break the $2450 resistance and the 100 hourly simple moving average to gain momentum.
Bitcoin cash price declined towards $2300 against the US Dollar. BCH/USD is attempting recovery, but is facing hurdles near $2450.
Bitcoin Cash Price Resistance
Yesterday, we discussed that bitcoin cash price could test the $2300 support area against the US Dollar. The price did move down and tested the $2300 and $2280 support levels. Buyers were successful in preventing further declines and the price started a recovery above $2325. It moved above the 23.6% Fib retracement level of the last decline from the $2725 high to $2255 low.
However, the price is facing many upside barriers around $2400 and $2450. There is a new connecting bearish trend line forming with resistance at $2450 on the hourly chart of BCH/USD. The trend line at $2450 is positioned along with the 100 hourly simple moving average. Moreover, the 38.2% Fib retracement level of the last decline from the $2725 high to $2255 low is around $2440. Therefore, the $2450 area seems be a major upside hurdle for buyers in the near term.
A close above the $2450 and the 100 hourly SMA is needed for a push above the $2500 handle. An intermediate resistance is at the 50% Fib retracement level of the last decline from the $2725 high to $2255 low. On the downside, the $2300 and $2280 levels may continue to act as crucial supports.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just around the 50 level.
Major Support Level – $2300
Major Resistance Level – $2450
Charts courtesy – Trading View, Kraken
