Key Points
- Bitcoin cash price declined further and broke the $730 support area against the US Dollar.
- There was a break below a key bullish trend line with support at $740 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may continue to move down towards the last swing low and support at $700.
Bitcoin cash price extended its downside correction below $740 against the US Dollar. BCH/USD is likely to extend its decline further towards the $700 support.
Bitcoin Cash Price Decline
There was a downside correction initiated from the $780 swing high in bitcoin cash price against the US Dollar. The BCH/USD pair declined below the $750 support and faced an increased selling pressure. It prompted more declines and the price declined below the $740 support area. More importantly, there was a close below the 50% Fib retracement level of the last leg from the $698 low to $780 high.
Sellers took control recently, resulting in a break below $730. There was also a break below a key bullish trend line with support at $740 on the hourly chart of the BCH/USD pair. The pair is now trading well below the $750 level and the 100 hourly simple moving average. An immediate support is around the 76.4% Fib retracement level of the last leg from the $698 low to $780 high at $717. Below this, the price is likely to extend losses towards the last swing low and support at $700.
Looking at the chart, the price is showing a few bearish signs below $750, $740 and the 100 hourly SMA. If there is an upside correction, buyers could struggle to break the $740 and $750 resistance levels in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is placed heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now moving into the oversold levels.
Major Support Level – $700
Major Resistance Level – $750
