Key Points
- Bitcoin cash price failed to move above the 0 resistance zone and declined against the US Dollar.
- This week’s followed important bearish trend line is intact with resistance at 5 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair has to move above the 5 and 0 resistance levels to gain traction in the near term.
Bitcoin cash price is showing a few bearish signs below 0 against the US Dollar. BCH/USD could decline further if buyers fail to keep the price above 0.
Bitcoin Cash Price Analysis
Yesterday, we discussed two important resistance levels near 0 and 5 for bitcoin cash price against the US Dollar. The BCH/USD pair failed to break the 0 resistance and remained under pressure. There was also no break above the 50% Fib retracement level of the last slide from the 0 high to 3 low. The price also struggled to gain traction above the 100 hourly simple moving average, which is currently at 6.
The recent swing low was formed at 7 and the price is currently correcting higher. An immediate resistance is near the 61.8% Fib retracement level of the recent drop from the 28 high to 7 low at 0. Above this, the price is likely to face a strong resistance near the 0 zone. More importantly, this followed important bearish trend line is intact with resistance at 5 on the hourly chart of the BCH/USD pair. Therefore, buyers need to clear the 5 and 0 resistance levels to push the price in a positive zone.
Looking at the chart, BCH price seems to be at a risk of more losses below 0. If sellers push the price below the 3 and 0 support levels, there could be more downsides.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is mostly flat in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just below the 50 level.
Major Support Level – 0
Major Resistance Level – 0
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