Key Points
- Bitcoin cash price tumbled and broke the 5 and 0 support levels against the US Dollar.
- There is a monster 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 currently at a risk of more losses below the 0 level in the near term.
Bitcoin cash price ABC tumbled below 0 whereas BCHSV climbed above 0 against the US Dollar. BCH/USD is under pressure and it could trade towards .
Bitcoin Cash Price Analysis
Yesterday, we discussed that bitcoin cash price could test the 0 support against the US Dollar. The BCH/USD pair did move down and broke the 0 and 0 support levels. The price not only tested the 0 level, but sellers succeeded in clearing 0. A new yearly low was formed near and it seems like the price may continue to slide. More importantly, BCHSV climbed higher recently and surpassed the value of BCHABC, which is a negative sign.
There are many bearish signs on the chart below the 0 level. If there is a correction, the price may test the 5-108 resistance zone. It coincides with the 23.6% Fib retracement level of the recent decline from the 5 high to low. However, the price is trading well below the 5 level and the 100 hourly simple moving average. Therefore, a major upward move above 0 is very unlikely. Besides, there is a monster bearish trend line in place with resistance at 0 on the hourly chart of the BCH/USD pair.
Looking at the chart, BCH price remains in a major downtrend below 0. Sellers are likely to push the price below the level. The next target for them could be .
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is placed heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is near oversold levels.
Major Support Level –
Major Resistance Level – 5
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