Key Points
- Bitcoin cash price failed to break an important resistance near $350 against the US Dollar.
- This week’s highlighted key bearish trend line with current resistance at $335 played well on the hourly chart of BCH/USD (data feed from Kraken).
- The price is now back below $320 and struggling to move higher towards $340-350.
Bitcoin cash price failed to gain momentum above $350 against the US Dollar. BCH/USD is now back in the bearish zone and struggling to hold $300.
Bitcoin Cash Price Upside Hurdle
Yesterday, there was a decent upside move in Bitcoin cash price above the $320 level against the US Dollar. The price gained pace towards $350, but failed to break the mentioned level. The most important thing was failure to clear this week’s highlighted key bearish trend line with current resistance at $335 on the hourly chart of BCH/USD. The pair was rejected from the trend line resistance at $350 and started a downside move.
It moved back below the $320 level and recently traded as low as $305.8. It is currently correcting higher, but facing sellers near the 38.2% Fib retracement level of the last decline from the $353 high to $305 low. Above $325, the next resistance is near $330 and the 50% Fib retracement level of the last decline from the $353 high to $305 low. However, the most significant hurdle remains around the same trend line resistance just below $340.
As long as the price is below the trend line and $350, it remains at a risk of further declines. On the downside, the $300 handle is crucial. A daily close below $300 would ignite sharp losses in the short term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently flat and attempting to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently just below the 50 level.
Major Support Level – $300
Major Resistance Level – $340
Charts courtesy – Trading View, Kraken
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.