Key Points
- Bitcoin cash price extended losses and traded below the 0 level against the US Dollar.
- There are two key bearish trend lines in place with resistance at 0 and 0 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair remains at a risk of more losses below the 0 level in the near term.
Bitcoin cash price traded below the key 0 support against the US Dollar. BCH/USD could correct higher, but sellers are likely to appear near 0 or 0.
Bitcoin Cash Price Analysis
Yesterday, we discussed that bitcoin cash price could extend losses below 0 against the US Dollar. The BCH/USD pair corrected a few points recently, but it failed to break the 0 resistance. Later, there was a sharp downside move and the price declined below the 0 and 0 supports. A new low was formed at 0 and the price is now trading well below the 100 hourly simple moving average.
At the moment, the price is consolidating losses around the 0 level. It seems like the 23.6% Fib retracement level of the last slide from the 1 high to 0 low is acting as a resistance. Moreover, there are two key bearish trend lines in place with resistance at 0 and 0 on the hourly chart of the BCH/USD pair. The first bearish trend line coincides with the 50% Fib retracement level of the last slide from the 1 high to 0 low. Therefore, the 0-405 zone could prevent gains in the near term.
Looking at the chart, BCH price could correct a few points above 0. However, buyers are likely to struggle near 0, 5, 0 and finally 0. On the downside, the next target for sellers could be 0.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently flat near the 40 level.
Major Support Level – 0
Major Resistance Level – 5
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