- 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.
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