Key Points
- Bitcoin cash price struggled to recover and it is currently moving lower against the US Dollar.
- Yesterday’s highlighted key bearish trend line is intact with resistance at 0 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair could break to the downside below 4 if there is no break above 0 and 5.
Bitcoin cash price remains at a risk below 0 against the US Dollar. BCH/USD must break the 0 and 5 resistances to recover in the near term.
Bitcoin Cash Price Analysis
After trading as high as 5, bitcoin cash price started a downside move against the US Dollar. The BCH/USD pair traded towards the 0 support area and formed a low near 4. Later, there was a minor upside recovery above the 5 level. The price moved above the 23.6% Fib retracement level of the last drop from the 5 high to 5 swing low. However, upsides remained capped by the 0 and 5 resistance levels.
Buyers failed to surpass the 0 resistance zone. More importantly, yesterday’s highlighted key bearish trend line is intact with resistance at 0 on the hourly chart of the BCH/USD pair. Besides, the 50% Fib retracement level of the last drop from the 5 high to 5 swing low is also near 0. Therefore, a break above the 0 resistance is needed for a short term recovery. The next main resistances on the upside are near the 5 and 0 levels. On the downside, the 0 and 4 levels are important supports. Below these supports, the price could drop towards the 0 level.
Looking at the chart, BCH price is clearly in a downtrend as long as there is no upside break above the 0 and 0 levels.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is placed below the 50 level.
Major Support Level – 4
Major Resistance Level – 0
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