Bitcoin Cash Price Technical Analysis – BCH/USD To Extend Declines




Bitcoin cash price is once again moving lower against the US Dollar. BCH/USD might continue to lose and most likely to trade below $300.
Bitcoin Cash Price Technical Analysis BCH USD

Key Points

  • Bitcoin cash price failed to move past the $360 level against the US Dollar and started trading lower.
  • There is a major descending channel pattern with resistance at $310 forming on the hourly chart of BCH/USD (data feed from Kraken).
  • The price might continue to decline and could even test the $280-275 support zone in the near term.

Bitcoin cash price is once again moving lower against the US Dollar. BCH/USD might continue to lose and most likely to trade below $300.

Bitcoin Cash Price Decline

There was a decent recovery initiated recently in Bitcoin cash price above $320 against the US Dollar. The price traded with a positive tone and was even able to move above the $350 level. However, the upside move failed near $355.27 form where the price started a downside move. The price slowly and steadily moved lower below the 50% Fib retracement level of the last wave from the $275 low to $355 high.

There was even a close below the 100 hourly simple moving average and the $320 level. It opened the doors for a close below the $300 level in the near term. A major descending channel pattern with resistance at $310 is formed on the hourly chart of BCH/USD. It might continue to act as a major hurdle for buyers near $310 and the 100 hourly simple moving average.

Bitcoin Cash Price Technical Analysis BCH USD

At the moment, the price is trading near the 76.4% Fib retracement level of the last wave from the $275 low to $355 high. So, there is a high chance of it trading towards the last swing low of $275. Overall, selling rallies towards $310 might be considered in the short term.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slightly placed in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is attempting a recovery from the oversold levels.

Major Support Level – $275

Major Resistance Level – $310

 

Charts courtesy – Trading View, Kraken

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Aayush Jindal

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets.

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