Key Points
- Bitcoin cash price failed to break the 0 resistance and declined recently against the US Dollar.
- There was a break below a key bullish trend line with support at 5 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is under pressure and it may continue to move down towards the 0 support.
Bitcoin cash price failed near key resistances against the US Dollar. BCH/USD is heading south and there could be more losses towards the 0 level.
Bitcoin Cash Price Analysis
Yesterday, we discussed a possible upside move if bitcoin cash price clear the 0 resistance against the US Dollar. The BCH/USD pair failed to gain traction above the 0 level. There was also a rejection noted near the 50% Fib retracement level of the last decline from the 1 high to 8 low. The price started a fresh downside move and traded below the 0 support.
During the decline, there was a break below a key bullish trend line with support at 5 on the hourly chart of the BCH/USD pair. The pair also cleared the last swing low at 0. It tested the 1.236 Fib extension level of the last wave from the 0 low to 9 high. If sellers remain in control, there could be more losses in the near term towards the 0 and 0 support levels. An intermediate support is at 2 and the 1.618 Fib extension level of the last wave from the 0 low to 9 high. On the upside, the 5-530 zone may now act as a resistance.
Looking at the chart, BCH price is now trading well below the 100 hourly SMA and 0. As long as there is no close above the 100 hourly SMA, there is a risk of more losses towards 0.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving towards the 25 level.
Major Support Level – 0
Major Resistance Level – 0
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