- Bitcoin cash price is facing a strong resistance near the 6 and 8 levels against the US Dollar.
- The price is currently consolidating in a range above the 0 support area.
- There is a major bearish trend line forming with resistance near 5 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair must surpass the 6 resistance area to start a nice upward move.
Bitcoin cash price is facing many resistances near 6 against the US Dollar. BCH/USD could tumble below 0 if it continues to struggle near 6.
Bitcoin Cash Price Analysis
After a steady decline, bitcoin cash price found support near the 0 level against the US Dollar. BCH price traded as low as 9 and recently started an upside correction.
It broke the 3 level, and the 23.6% Fib retracement level of the last key decline from the 7 high to 9 low. However, the price seems to be facing a strong resistance near the 6 and 8 levels.
Similarly, bitcoin is struggling to gain momentum above the ,400 resistance area and Ethereum is finding it hard to continue higher above 2.
On the upside, BCH seems to be struggling near the 6 level and the 100 hourly simple moving average. Besides, the 50% Fib retracement level of the last key decline from the 7 high to 9 low is near the 8 level.
More importantly, there is a major bearish trend line forming with resistance near 5 on the hourly chart of the BCH/USD pair. Therefore, an upside break above the 6 and 8 resistance levels is must for bullish continuation.
The next set of resistances is near the 5 level. An intermediate resistance is near the 61.8% Fib retracement level of the last key decline from the 7 high to 9 low at 0.
On the other hand, the price could fail to surpass 6 and 8. In the mentioned case, the price is likely to retest the 0 support area. Any further losses may perhaps lead the price towards the 0 support area.
Looking at the chart, bitcoin cash price seems to be consolidating below the main 6 and 8 resistance levels. In the short term, there could be ranging moves above the 0 support before the price either rallies towards 7 or revisit the 0 support area.
Technical indicators
Hourly MACD – The MACD for BCH/USD is currently losing momentum and moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is still below the 50 level, with a minor bullish angle.
Key Support Levels – 0 and 0.
Key Resistance Levels – 6 and 8.
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