Key Points
- Bitcoin cash price declined further and tested the 0 support against the US Dollar.
- There is a crucial bearish trend line in place with resistance at 0 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to face a strong selling interest near the 0 and 5 levels in the near term.
Bitcoin cash price found support near 0 against the US Dollar. BCH/USD is correcting higher, but it could face sellers near the 0-535 zone.
Bitcoin Cash Price Analysis
Yesterday, we saw a fresh downside move below 0 in bitcoin cash price against the US Dollar. The BCH/USD pair declined below the 0 and 5 support levels. The drop was such that the price tested the 0 support area. Later, buyers appeared and protected further losses below 0. A low was formed at 2 and the price started an upside correction.
It has moved above the 23.6% Fib retracement level of the recent decline from the 9 high to 2 low. However, there are many hurdles on the upside near the 0 level. More importantly, there is a crucial bearish trend line in place with resistance at 0 on the hourly chart of the BCH/USD pair. Additionally, the 61.8% Fib retracement level of the recent decline from the 9 high to 2 low is also at 1. Finally, the 100 hourly simple moving average is positioned near 0. Therefore, it won’t be easy for BCH buyers to clear the 0 and 5 resistance levels.
Looking at the chart, BCH price may continue to move higher, but upsides are likely to be capped by 5. Above this, the price will most likely test the 0 resistance zone in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is gaining in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now back above the 50 level.
Major Support Level – 0
Major Resistance Level – 5
The post Bitcoin Cash Price Analysis: BCH/USD is Facing Uphill Task appeared first on NewsBTC.