Key Points
- Bitcoin cash price traded as high as 7 and later corrected lower against the US Dollar.
- There was a break below a key bullish trend line with support at 5 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently trading near a major support at 5 and the 100 hourly simple moving average.
Bitcoin cash price started a downside correction from the 0 swing high against the US Dollar. BCH/USD is currently consolidating near 5 and it could bounce back.
Bitcoin Cash Price Analysis
Yesterday, there were extended gains above the 0 resistance in bitcoin cash price against the US Dollar. The BCH/USD pair traded above the 0 resistance and settled above the 100 hourly simple moving average. The price traded as high as 7 before sellers appeared. As a result, there was a downside correction and the price moved below the 0 level.
During the decline, the price broke the 50% Fib retracement level of the last leg from the 4 low to 7 high. Moreover, there was a break below a key bullish trend line with support at 5 on the hourly chart of the BCH/USD pair. The pair extended losses and it is currently trading near a major support at 5 and the 100 hourly simple moving average. Besides, the 61.8% Fib retracement level of the last leg from the 4 low to 7 high is also near 5. Therefore, the price is likely to bounce back towards 0 and 0.
Looking at the chart, BCH price showing positive signs above the 5 support. There could be a fresh bearish move, but the price is likely to stay above the 0-550 zone. On the upside, a break above the 0 resistance may push the price above 0.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well below the 50 level.
Major Support Level – 5
Major Resistance Level – 0
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