Key Points
- Bitcoin cash price failed to trade above 5-180 and declined sharply against the US Dollar.
- There are two key bearish trend lines formed with resistance near 5 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently trading near the 5 support and it could tumble towards 0 in the near term.
Bitcoin cash price struggled to hold gains above 0 against the US Dollar. BCH/USD is under pressure and it looks set to clear the 0 and 0 support levels.
Bitcoin Cash Price Analysis
Recently, there were range moves above the 5 support in bitcoin cash price against the US Dollar. The BCH/USD pair jumped higher later and climbed above the 0 resistance. There was a break above the 23.6% Fib retracement level of the last drop from the 7 high to 4 low. However, there was no proper close above the 0 and 0 resistance levels. The price also failed to settle above 0 and the 100 hourly simple moving average.
Moreover, there are two key bearish trend lines formed with resistance near 5 on the hourly chart of the BCH/USD pair. The pair also struggled to settle above the 50% Fib retracement level of the last drop from the 7 high to 4 low. Finally, there was a downside reaction and the price tumbled below the 5 and 0 levels. At the outset, the price is trading near the 5 support, with a bearish angle. It seems like there could be a sharp downside reaction towards 0.
Looking at the chart, BCH price is clearly under pressure below 0 and the 100 hourly SMA. To recover, buyers need to gain strength above 5 and 0 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is gaining strength in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well below the 50 level.
Major Support Level – 5
Major Resistance Level – 0
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