Bitcoin Cash Price Technical Analysis – BCH/USD Breaks Down




Bitcoin cash price traded lower sharply below $1000 against the US Dollar. BCH/USD is now under pressure and remains sell on rallies.
Bitcoin Cash Price Technical Analysis BCH USD

Key Points

  • Bitcoin cash price broke down and traded below the $1000 handle against the US Dollar.
  • This week’s highlighted bearish trend line with current resistance at $1050 is in place on the hourly chart of BCH/USD (data feed from Kraken).
  • The price is currently recovering but it will most likely face sellers near $1050 and $1100.

Bitcoin cash price traded lower sharply below $1000 against the US Dollar. BCH/USD is now under pressure and remains sell on rallies.

Bitcoin Cash Price Resistance

There was no major recovery in bitcoin cash price yesterday above $1200 against the US Dollar. The price started a sharp downside move and traded below a couple of important support levels like $1050 and $1000. The decline was strong and the price traded close to $800. A low was formed near $835 from where a recovery wave is initiated. The price has moved above the 23.6% Fib retracement level of the last drop from the $1220 high to $835 low.

However, this week’s highlighted bearish trend line with current resistance at $1050 is in place on the hourly chart of BCH/USD. The same trend line resistance is near $1050. So, the previous support at $1050 may now act as a resistance for buyers in the near term. It also coincides with the 50% Fib retracement level of the last drop from the $1220 high to $835 low.

Bitcoin Cash Price Technical Analysis BCH USD

The current recovery is positive, but a break below $1050 was negative. Therefore, bitcoin cash price might continue to face sellers near $1050 and $1100. On the downside, an initial support is around $900. Below $900, the price will most likely retest the recent low of $835.

Looking at the technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is recovering from the overbought levels, but it is below 50.

Major Support Level – $850

Major Resistance Level – $1050

 

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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