Key Points
- Bitcoin cash price declined further and traded close to the $200 support against the US Dollar.
- This week’s followed important bearish trend line is still in place with resistance at $280 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair could find it difficult to clear the $275 and $280 resistance levels in the near term.
Bitcoin cash price tested the $200 support area and recovered against the US Dollar. However, BCH/USD is facing a solid resistance near the $280 level.
Bitcoin Cash Price Analysis
Yesterday, we discussed that bitcoin cash price could slide further towards $200 against the US Dollar. The BCH/USD pair did decline further and traded below the $240 and $220 support levels. It traded close to the $200 level and settled below the 100 hourly simple moving average. The price traded as low as $202 and later started an upside correction. Buyers pushed the price above the 23.6% Fib retracement level of the recent slide from the $361 high to $202 low.
However, the recent recovery faced a solid resistance near the $280 level. More importantly, this week’s followed important bearish trend line is still in place with resistance at $280 on the hourly chart of the BCH/USD pair. Besides, the 50% Fib retracement level of the recent slide from the $361 high to $202 low acted as a hurdle. The pair is currently consolidating near the $250 level with a minor bullish angle. It seems like buyers could make another attempt to clear the $275 and $280 resistance levels.
Looking at the chart, BCH price may find it difficult to surpass the $280 barrier. If buyers succeed, the price could recover towards the $300 and $330 levels in the near term.
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 just around the 50 level.
Major Support Level – $220
Major Resistance Level – $280