Key Points
- Bitcoin cash price declined sharply and broke the $434-435 support area against the US Dollar.
- There is a major bearish trend line in place with resistance at $435 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair was rejected near the trend line, igniting a sharp decline towards $400.
Bitcoin cash price turned south and broke the $430 and $420 support against the US Dollar. BCH/USD could recover but it is likely to face sellers near $420-425.
Bitcoin Cash Price Analysis
After consolidating for many days above the $430 level, bitcoin cash price reacted to the downside against the US Dollar. The BCH/USD pair failed to break the $440 and $450 resistance levels and declined sharply. It broke the $432, $430 and $420 support levels to move into a bearish zone. There was even a close below the $420 level and the 100 hourly simple moving average.
It seems like the BCH/USD pair was rejected near a major bearish trend line with current resistance at $435 on the hourly chart. The pair traded close to the $400 handle and formed a low at $408. It is currently consolidating just below the 23.6% Fib retracement level of the last decline from the $438 high to $408 low. The price may perhaps correct a few points above the $415 level. However, gains could be limited and levels such as $420 and $425 are likely to prevent gains. Moreover, the 50% Fib retracement level of the last decline from the $438 high to $408 low awaits near $423.
Looking at the chart, BCH price has moved into a bearish zone below the $425 level. If there is any recovery in the short term, buyers are likely to struggle near $420 or $425.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is recovering above the 30 level.
Major Support Level – $408
Major Resistance Level – $425
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