Key Points
- Bitcoin cash price continued to correct lower and moved below the 00 support against the US Dollar.
- There is a major bearish trend line forming with resistance near 80 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might extend its decline and it could even break the 00 support in the near term.
Bitcoin cash price is moving lower towards 00 against the US Dollar. BCH/USD might extend declines and remains at risk of more losses.
Bitcoin Cash Price Correction
Yesterday, we saw the start of a downside correction below 00 in bitcoin cash price against the US Dollar. The price continued to correct lower and it recently moved below the 00 support area. There was a break of the 61.8% Fib retracement level of the last upside wave from the 48 low to 50 high. It has opened the doors for more declines since the price is now below 00.
At present, the price is trading near 50 and remains at a risk of more declines. The next major support is near the 00 level, which might attempt to protect further slides. On the upside, there is a major bearish trend line forming with resistance near 80 on the hourly chart of BCH/USD. The pair might fail to break the trend line and the 23.6% Fib retracement level of the recent drop from the 18 high to 50 low. Above the trend line resistance, the 50 level is a crucial resistance.
The mentioned 50 resistance is close to the 38.2% Fib retracement level of the recent drop from the 18 high to 50 low. The overall trend is short-term bearish with chances of a test of 00.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has moved into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is reaching the 20 level.
Major Support Level – 00
Major Resistance Level – 00
Charts courtesy – Trading View, Kraken
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