Key Points
- Bitcoin cash price made a downside move recently and traded below $1800 against the US Dollar.
- There is a new connecting bearish trend line forming with resistance at $1650 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair has to move above the $1650 and $1700 resistance levels to gain upside traction.
Bitcoin cash price traded below the $1800 and $1700 supports against the US Dollar. BCH/USD is likely to remain in a downtrend as long as it is below $1700.
Bitcoin Cash Price Decline
There was a steady decline noted in bitcoin cash price from the $2000 swing high against the US Dollar. The price declined and moved below the $1800 and $1700 support levels. It even broke the 50% Fib retracement level of the last upside leg from the $1350 low to $2132 high. It opened the doors for more losses and the price traded toward $1500.
A low was formed at $1503 and the price is currently correcting higher. It is testing the 23.6% Fib retracement level of the last decline from the $2125 high to $1503 low. There is also a new connecting bearish trend line forming with resistance at $1650 on the hourly chart of BCH/USD. A break above the trend line resistance at $1650 is needed for buyers to gain control. Above $1650, the next major resistance is at $1800 and the 100 hourly simple moving average. It is also the 50% Fib retracement level of the last decline from the $2125 high to $1503 low.
Therefore, a break above the $1800 resistance would be a good positive signal. On the downside, the $1500 level is a major support and must hold to avoid further declines.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is struggling to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is recovering higher toward the 45 level.
Major Support Level – $1500
Major Resistance Level – $1650
Charts courtesy – Trading View, Kraken