Key Points
- Bitcoin cash price failed to hold gains above 0 and declined sharply against the US Dollar.
- There was a break below a major bullish trend line with support at 0 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair declined heavily and retested the 0 and 0 support levels where buyers emerged.
Bitcoin cash price formed a top near the 5 level and declined against the US Dollar. BCH/USD is holding the 0 support, but it remains at risk of more losses.
Bitcoin Cash Price Decline
Yesterday, we saw a sharp upward move above the 0 level in bitcoin cash price against the US Dollar. However, the BCH/USD pair failed to stay above the 0 level, formed a top at 4, and later declined sharply. There was a sharp downside move and the price declined back below the 0 level. There was also a close below the 0 support and the 100 hourly simple moving average.
Besides, there was a break below a major bullish trend line with support at 0 on the hourly chart of the BCH/USD pair. The pair also traded below the 0 support and declined towards 0. A low was formed at 9 and the price is currently consolidating losses. It is testing the 23.6% Fib retracement level of the last drop from the 4 high to 9 low. Above the 5 resistance, the price could trade towards the 0 resistance. It now represents the 50% Fib retracement level of the last drop from the 4 high to 9 low. Moreover, the 100 hourly simple moving average is also positioned near the 5 level to prevent gains.
Looking at the chart, BCH price is back to where it started around 0. Should there be a break below 0, the price may perhaps decline to 0.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.
Major Support Level – 0
Major Resistance Level – 0
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