Key Points
- Bitcoin cash price started a downside correction and traded towards $1,350 against the US Dollar.
- There is a crucial bullish trend line in place with support near $1,360 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair must hold the trend line support and $1,350 to remain in a bullish zone in the near term.
Bitcoin cash price is correcting lower from $1,575 against the US Dollar. BCH/USD must stay above the $1,350 support to avoid any further declines.
Bitcoin Cash Price Correction
After a major upside move, bitcoin cash price faced sellers near $1,575 against the US Dollar. The price topped around the $1,574.0 level and started a downside correction. It declined and traded below the $1,500 and $1,400 support levels. It traded towards the $1,350 support zone and formed a low near $1,344. Later, the price got stable and started consolidating above the $1,350 level.
On the downside, there is a crucial bullish trend line in place with support near $1,360 on the hourly chart of the BCH/USD pair. Below the trend line support and $1,350, the next major support is around the 100 hourly simple moving average at $1,300. Therefore, there are two crucial supports for the current trend – $1,350 and $1,300. As long as the price is above the stated supports, it could bounce back towards $1,500. At the moment, the price is recovering and testing the 38.2% Fib retracement level of the last decline from the $1,574 high to $1,344 low.
Looking at the chart, there is also a connecting bearish trend line with resistance at $1,460. A break and close above the $1,460 and $1,500 resistance levels could push the price back towards $1,575 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.
Major Support Level – $1,350
Major Resistance Level – $1,460