Key Points
- Bitcoin cash price traded further lower and tested the 00 support area against the US Dollar.
- There is a new connecting bearish trend line forming with resistance at 50 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair needs to break the 50 resistance and the 100 hourly simple moving average to gain momentum.
Bitcoin cash price declined towards 00 against the US Dollar. BCH/USD is attempting recovery, but is facing hurdles near 50.
Bitcoin Cash Price Resistance
Yesterday, we discussed that bitcoin cash price could test the 00 support area against the US Dollar. The price did move down and tested the 00 and 80 support levels. Buyers were successful in preventing further declines and the price started a recovery above 25. It moved above the 23.6% Fib retracement level of the last decline from the 25 high to 55 low.
However, the price is facing many upside barriers around 00 and 50. There is a new connecting bearish trend line forming with resistance at 50 on the hourly chart of BCH/USD. The trend line at 50 is positioned along with the 100 hourly simple moving average. Moreover, the 38.2% Fib retracement level of the last decline from the 25 high to 55 low is around 40. Therefore, the 50 area seems be a major upside hurdle for buyers in the near term.
A close above the 50 and the 100 hourly SMA is needed for a push above the 00 handle. An intermediate resistance is at the 50% Fib retracement level of the last decline from the 25 high to 55 low. On the downside, the 00 and 80 levels may continue to act as crucial supports.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just around the 50 level.
Major Support Level – 00
Major Resistance Level – 50
Charts courtesy – Trading View, Kraken
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