Key Points
- Bitcoin cash price crashed and declined more than 0 towards the 0 level against the US Dollar.
- There is a major bearish trend line in place with resistance at 0 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently consolidating above the 0 level and it could correct a few points in the near term.
Bitcoin cash price declined heavily below 0 against the US Dollar. BCH/USD tested the 0 support and it is currently consolidating losses.
Bitcoin Cash Price Analysis
Yesterday, we discussed chances of more declines below the 0 support in bitcoin cash price against the US Dollar. The BCH/USD pair did move down and broke the 0 and 0 support levels. The decline was nasty as the price dropped by around 0 and traded close to the 0 support. A new low was formed at 4 and the price is currently consolidating losses.
An initial resistance on the upside is 5. It represents the 23.6% Fib retracement level of the recent decline from the 8 high to 4 low. At the moment, it seems like a decent recovery is very unlikely above 5 and 0. Above 0, there is a major bearish trend line in place with resistance at 0 on the hourly chart of the BCH/USD pair. It also coincides with the 50% Fib retracement level of the recent decline from the 8 high to 4 low. On the other hand, if the price continues to move down, it could break the 0 support.
Looking at the chart, BCH price remains in a major downtrend below the 0 and 0 resistances. If sellers push the price below 0, there could be another sharp decline towards 0.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving higher toward the 40 level.
Major Support Level – 0
Major Resistance Level – 5
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