Key Points
- Bitcoin cash price moved a few points above 0, but it failed to gain momentum against the US Dollar.
- This week’s highlighted important bearish trend line was broken with resistance at 8 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair failed to gain traction and it could move back below 0 in the near term.
Bitcoin cash price failed to recover above 0 against the US Dollar. BCH/USD may perhaps resume its slide for more losses below 0.
Bitcoin Cash Price Support
Yesterday, there was a minor upside move initiated from the 8 swing low in bitcoin cash price against the US Dollar. The BCH/USD pair tested the 76.4% Fib retracement level of the last wave from the 4 low to 0 high. Later, it started an upside move and traded above the 0 level. More importantly, this week’s highlighted important bearish trend line was broken with resistance at 8 on the hourly chart of the BCH/USD pair.
However, the price failed to gain momentum after it broke the trend line and 0. It also faced a strong resistance near the 38.2% Fib retracement level of the last drop from the 0 high to 8 low. Lastly, the 100 hourly simple moving average and the 0 resistance also stopped gains. The price is once again under pressure and it may perhaps break the 0 level. On the downside, supports are seen near the 8 and 5 levels.
Looking at the chart, the price has to move above the 0 resistance and the 100 hourly SMA. The 50% Fib retracement level of the last drop from the 0 high to 8 low is also at 4 to prevent gains. A successful close above 5-740 is needed for buyers to take control.
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 now placed above the 50 level.
Major Support Level – 8
Major Resistance Level – 5
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