- Bitcoin cash price continued to move down and currently trading below the $320 level against the US Dollar.
- There is a crucial descending channel pattern with resistance at $315 forming on the hourly chart of BCH/USD (data feed from Kraken).
- The price may extend its decline and might soon test the $275 support in the short term.
Bitcoin cash price is struggling to move higher against the US Dollar. BCH/USD is likely to remain under bearish pressure and could even trade towards $275.
Bitcoin Cash Price Support
In yesterday’s analysis, we saw a declining pattern below $320 in Bitcoin cash price against the US Dollar. The price remained under pressure and declined towards $290. The most important point is the fact that the 100 hourly simple moving average and the $320 resistance are acting as strong barriers. Moreover, yesterday’s highlighted crucial descending channel pattern with resistance at $315 on the hourly chart of BCH/USD is still intact.
The price is currently struggling to trade above the 38.2% Fib retracement level of the last decline from the $330.00 high to $293.03 low. On the upside, the channel resistance near $315 may be considered as a sell zone in the near term. It also coincides with the 100 hourly simple moving average at $310. Moreover, the 50% Fib retracement level of the last decline from the $330.00 high to $293.03 low is at $311.
Therefore, the $310-315 area is a crucial resistance for buyers in the near term. As long as the price is below $315, it may continue to move down. The next major support on the downside sits at $375, which can hold losses.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is struggling to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is still way below the 50 level.
Major Support Level – $275
Major Resistance Level – $315
Charts courtesy – Trading View, Kraken