Key Points
- Bitcoin cash price remains in a bearish zone below the $1,200-20 resistance area against the US Dollar.
- There is a major bearish trend line forming with resistance at $1,220 on the hourly chart of BCH/USD (data feed from SimpleFX).
- The pair must stay above the $1,100 support area to avoid further declines in the near term.
Bitcoin cash price is struggling to move above the $1,220 resistance against the US Dollar. BCH/USD may even break the $1,100 support for further declines.
Bitcoin Cash Price Decline
This past week, we saw a fresh downside move below $1,250 in bitcoin cash price against the US Dollar. The price even traded and settled below the $1,200 support. It recently formed a low at $1,118 and is currently trading in a tiny range. It has moved above the 23.6% Fib retracement level of the last decline from the $1,286 high to $1,118 low. However, there are many resistances on the upside towards the $1,250 level.
An initial resistance is around the $1,200 level and the 100 hourly simple moving average. The stated $1,200 level is also the 50% Fib retracement level of the last decline from the $1,286 high to $1,118 low. Above the stated $1,200, there is a major bearish trend line forming with resistance at $1,220 on the hourly chart of BCH/USD. The trend line resistance is near the 61.8% Fib retracement level of the last decline from the $1,286 high to $1,118 low.
Therefore, it seems like the $1,200-1,220 resistance region is a crucial barrier for buyers. As long as the price is below $1,220, it remains at a risk of more declines in the near term. Below $1,100, the price may decline towards $1,050.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly reducing its bearish slope.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD has just moved above the 50 level.
Major Support Level – $1,220
Major Resistance Level – $1,100
Charts courtesy – SimpleFX