Bitcoin Cash Price Technical Analysis – BCH/USD Upsides Capped

Bitcoin Cash Price Technical Analysis BCH USD

Key Points

  • Bitcoin cash price declined further and moved below the $1450 support area against the US Dollar.
  • There is a new connecting bearish trend line forming with resistance near $1475 on the hourly chart of BCH/USD (data feed from Kraken).
  • The price might correct a few points in the near term, but upsides are likely to be capped by $1450-1480.

Bitcoin cash price is under pressure below $1500 against the US Dollar. BCH/USD might continue to decline as long as the price is below $1500.

Bitcoin Cash Price Resistance

As we discussed yesterday, there were further declines in bitcoin cash price below $1460-1450 against the US Dollar. The price declined below the $1400 handle as well to test the $1300-1280 support area. A low was formed at $1280.8 from where the price started an upside correction. It has moved above the 23.6% Fib retracement level of the last decline from the $1610 high to $1280 low.

However, any further gains are likely to be capped by resistances such as $1450, $1475 and $1500 in the near term. An immediate resistance is around the 50% Fib retracement level of the last decline from the $1610 high to $1280 low at $1445. Above $1445, the $1450 level and a new connecting bearish trend line with resistance near $1475 on the hourly chart of BCH/USD are likely to prevent upsides. Moreover, the 61.8% Fib retracement level of the last decline from the $1610 high to $1280 low is around $1484 to act as a major hurdle.

Bitcoin Cash Price Technical Analysis BCH USD

Therefore, it seems like there are many resistances on the upside toward $1500. As long as the price is below the $1500 level, it remains in the bearish zone.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD has gained strength in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.

Major Support Level – $1280

Major Resistance Level – $1475

 

Charts courtesy – Trading View, Kraken

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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