- Bitcoin cash price after a ride started a downside move and traded towards $240 against the US Dollar.
- There was a break above a bearish trend line at $260 recently on the hourly chart of BCH/USD (data feed from Kraken).
- The price may correct further towards $340-360, but upsides remain limited.
Bitcoin cash price declined heavily recently against the US Dollar. BCH/USD is currently correcting higher, but upsides face resistance near $340-360.
Bitcoin Cash Price Decline
This past week, we saw a solid ride in Bitcoin cash price towards $800 vs the US Dollar before it started declining. The price faced a lot of selling pressure and declined below the $400 level to trade towards $250. The price traded as low as $240 recently where it found support and started an upside move. The price is currently recovering, but upsides remain capped by the $340-360 levels.
During the recent upside, there was a break above a bearish trend line at $260 recently on the hourly chart of BCH/USD. It has opened the doors for more gains and the price is now above the $280 level. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $560 high to $241 low. Above $320, the 100 hourly simple moving average is waiting to act as a hurdle near $340.
Moreover, the 38.2% Fib retracement level of the last decline from the $560 high to $241 low is at $372. So, the $340-370 zone is a major barrier for buyers. It won’t be easy for BCH to move back above the $400 level before a consolidation.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is attempting to move from the bearish to bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently heading higher and placed above the 50 level.
Major Support Level – $240
Major Resistance Level – $340
Charts courtesy – Trading View, Kraken