Key Points
- Bitcoin cash price corrected higher but it faced sellers near the 30 level against the US Dollar.
- There was a break below a key bullish trend line with support at 50 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair may correct further in the near term as long as it is below 00 and the 100 hourly simple moving average.
Bitcoin cash price failed to settle above 00 against the US Dollar. BCH/USD is again correcting lower and is trading below the 00 level.
Bitcoin Cash Price Resistance
Recently, we saw a decent recovery above 00 in bitcoin cash price against the US Dollar. The price traded above the 00 level, but it failed to settle above the 00 level. It made a top at 30 and started a downside correction. During the downside, there was a break below the 23.6% Fib retracement level of the last wave from the 49 low to 31 high.
More importantly, there was a break below a key bullish trend line with support at 50 on the hourly chart of BCH/USD. The pair moved down and even broke the 00 support and the 100 hourly simple moving average. It has opened the doors for more losses below 00. At the moment, the 50% Fib retracement level of the last wave from the 49 low to 31 high is acting as a support. Should there be a break below the 00 support, there could be more declines toward the 00 level.
On the upside, the broken support at 00 and the 100 hourly SMA are likely to act as a resistance. Above 00, the last high at 31 may be tested in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is not showing any major bearish sign.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently below the 50 level.
Major Support Level – 00
Major Resistance Level – 00
Charts courtesy – Trading View, Kraken
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