Key Points
- Bitcoin cash price failed to remain above the $760 support and declined against the US Dollar.
- There was a break below a key bullish trend line with support at $748 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently holding the $720 support, but it may struggle to gain upside momentum.
Bitcoin cash price declined below $760 against the US Dollar. BCH/USD must stay above the $720 support to avoid more declines in the near term.
Bitcoin Cash Price Decline
There were a couple of rejections noted around the $760-770 zone in bitcoin cash price against the US Dollar. The BCH/USD pair started a downside move and declined below the $750 support. There was even a close below the $750 pivot level and the 100 hourly simple moving average. These are negative signs and suggests that the price is struggling to move above $770.
During the decline, there was a break below a key bullish trend line with support at $748 on the hourly chart of the BCH/USD pair. The pair traded close to the $720 support and is currently trading in a range. It recently tested the 23.6% Fib retracement level of the last drop from the $810 high to $716 low. However, there is a strong resistance forming near the $750 level. Moreover, a bearish trend line is in place with resistance at $750. Therefore, a break above $750 is needed for a recovery in BCH.
Looking at the chart, the price must stay above the $720 support. If not, there is a risk of more declines towards the $700 level in the near term. On the upside, above $750, the next hurdle is at $770 and the 100 hourly SMA.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently below the 50 level.
Major Support Level – $720
Major Resistance Level – $750
