Key Points
- Bitcoin cash price traded further lower and broke the 0 support level against the US Dollar.
- There is a new connecting bearish trend line formed with resistance near 8 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair remains at a risk of more losses below the 0 level in the near term.
Bitcoin cash price extended losses below 0 against the US Dollar. BCH/USD may continue to move down and it could even test the 5 level.
Bitcoin Cash Price Analysis
Yesterday, we discussed that bitcoin cash price could break the 0 level against the US Dollar. The BCH/USD pair remained in a bearish zone and it did trade below the 0 and 0 levels. The decline was nasty as the price is now trading well below the 5 level and the 100 hourly simple moving average. The last swing low was formed near the 5 level before the price corrected higher.
It climbed above the 0 level and the 2 pivot level. There was a break above the 23.6% Fib retracement level of the recent slide from the 6 high to 5 low. However, the upside move was capped by the 5 and 6 resistance levels. The 50% Fib retracement level of the recent slide from the 6 high to 5 low also acted as a resistance. Moreover, there is also a new connecting bearish trend line formed with resistance near 8 on the hourly chart of the BCH/USD pair. The pair declined again and broke the 5 low.
Looking at the chart, BCH price is under pressure below the 8 and 5 level. It seems like the price may continue to move down and it could even break 0 and 2.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now near the oversold levels.
Major Support Level – 0
Major Resistance Level – 0
The post Bitcoin Cash Price Analysis: BCH/USD Crashes Below 0 appeared first on NewsBTC.