Bitcoin Cash price is holding the key 5 support against the US Dollar. BCH could start a fresh increase if it stays above the 5 and 0 support levels.
- Bitcoin cash price started a fresh decline below the 0 level against the US Dollar.
- The price is trading below 0 and the 100 simple moving average (4 hours).
- There is a key bearish trend line forming with resistance near 7 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
- The pair could start a fresh increase unless there is a move below 0.
Bitcoin Cash Price Holds Support
In the past few days, Bitcoin Cash price saw a steady decline from the 5 resistance zone. BCH declined below the 2 support to enter a short-term bearish zone, like Bitcoin and Ethereum.
The bears were able to push the price below the 0 support. Finally, the price found support near the 5 zone (a multi-touch zone). A low has formed near 6.59 and the price is now consolidating losses. It seems like there is a key bearish trend line forming with resistance near 7 on the 4-hour chart of the BCH/USD pair.
Bitcoin Cash is now trading below 0 and the 100 simple moving average (4 hours). Immediate resistance is near the 7 level and the trend line. It is close to the 23.6% Fib retracement level of the downward move from the 5 swing high to the 6 low.
Source: BCH/USD on TradingView.com
The next major resistance is near 8 or the 100 simple moving average (4 hours). The next major resistance is near the 2 level. It is close to the 50% Fib retracement level of the downward move from the 5 swing high to the 6 low. Any further gains could lead the price toward the 0 resistance zone.
Downside Break in BCH?
If Bitcoin Cash price fails to clear the 7 resistance, it could continue to move down. Initial support on the downside is near the 5 level.
The next major support is near the 0 level, where the bulls are likely to appear. If the price fails to stay above the 0 support, the price could test the 4 support. Any further losses could lead the price toward the 2 zone in the near term.
Technical indicators
4-hour MACD – The MACD for BCH/USD is losing pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently below the 50 level.
Key Support Levels – 5 and 0.
Key Resistance Levels – 7 and 2.