Key Points
- Bitcoin cash price failed to clear the 0 resistance and dropped sharply against the US Dollar.
- There is a key bearish trend line forming with resistance at 5 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is down more than 0 from highs and it turned sell on rallies near 5 and 0.
Bitcoin cash price dropped significantly below 0 against the US Dollar. BCH/USD is recovering, but it could face a lot of sellers near 5 and 0.
Bitcoin Cash Price Decline
Yesterday, we discussed an important resistance near 5 and 0 in bitcoin cash price against the US Dollar. The BCH/USD pair started a sharp downside move and declined more than 0 below 0. There was even a break below the 0 level and the price settled below the 100 hourly simple moving average. A low was formed near 5 and the price is currently correcting higher.
On the upside, an initial resistance is near the 23.6% Fib retracement level of the last decline from the 8 high to 5 low. There is also a key bearish trend line forming with resistance at 5 on the hourly chart of the BCH/USD pair. If the price breaks the trend line, it could trade towards the 0 resistance area. Above this, the next hurdle for buyers is near 5. It represents the 50% Fib retracement level of the last decline from the 8 high to 5 low. On the other hand, if the price fails to move above 5 and 0, it could drop again below 0.
Looking at the chart, BCH price is under a lot of pressure and any recoveries are likely to be capped near 5, 0 or 0.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly recovering from the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 40 level.
Major Support Level – 0
Major Resistance Level – 5
The post Bitcoin Cash Price Analysis: BCH/USD Turned Sell on Rallies appeared first on NewsBTC.