Key Points
- Bitcoin cash price failed to capitalize on the recent gains above $320 against the US Dollar and declined.
- There is a short-term bearish trend line forming with current resistance at $328 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might continue to trade in a range above the $300 level in the near term.
Bitcoin cash price continues to trade in a range against the US Dollar. BCH/USD has to move above $328 and then $340 to gain momentum.
Bitcoin Cash Price Range
There was an upside move in Bitcoin cash price yesterday towards $335 against the US Dollar. The price failed to hold on to gains above $335 and started a downside move. There was not even a complete test of the $340-350 resistance area. It was successful in moving above the 38.2% Fib retracement level of the last drop from the $358 high to $305 low.
However, the upside move was protected by a short-term bearish trend line with current resistance at $328 on the hourly chart of BCH/USD. Moreover, the price also failed to settle above the 50% Fib retracement level of the last drop from the $358 high to $305 low. Therefore, a downside was initiated and the price moved below $320. At present, it is consolidating above the $310 level and the all-important $305-300 support is still intact.
It seems like the price might continue to trade in a range above $305. To the topside, the most important resistance remains near $340 and $350. In the short term, traders may look to trade in the $305-340 range before the next real move either above $340 or below $300.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently showing bearish signs.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently below the 50 level.
Major Support Level – $310
Major Resistance Level – $330
Charts courtesy – Trading View, Kraken
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