Key Points
- Bitcoin cash price failed to bounce back and broke the 0 support against the US Dollar.
- There was a break below a declining channel with support at 5 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair declined sharply and broke the 5 and 0 support levels.
Bitcoin cash price nosedived below key supports against the US Dollar. BCH/USD is currently under pressure as it turned sell on rallies near 0-475.
Bitcoin Cash Price Analysis
Yesterday, we saw how bitcoin cash price failed to break the 0 resistance and declined against the US Dollar. The BCH/USD pair declined further and broke an important support near the 0 level. It opened the doors for more losses and the price dropped sharply below the 5 and 0 support levels. There was even a close below the 5 level and the 100 hourly simple moving average.
During the decline, there was a break below a declining channel with support at 5 on the hourly chart of the BCH/USD pair. The price even broke the 0 support and traded as low as 0. A low was formed at 0 and the price is currently in a bearish zone. An initial resistance is near the 23.6% Fib retracement level of the last decline from the 4 high to 0 low. An upward move won’t be easy since there are many resistance near the 5 level. The 50% Fib retracement level of the last decline from the 4 high to 0 low is also near 7.
Looking at the chart, BCH price has moved sharply into a bearish zone below 0. If there is a break below the 0 low, the price may even drop towards the 0 level in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 30 level.
Major Support Level – 0
Major Resistance Level – 5
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