- Bitcoin cash price declined further and tested the $410-405 support zone against the US Dollar.
- There are two bearish trend lines forming with resistance near $420 on the hourly chart of BCH/USD (data feed from Kraken).
- The price has to clear the $420-424 resistance zone to start an upside move in the near term.
Bitcoin cash price is struggling to gain bids against the US Dollar. BCH/USD is now eyeing an upside break above $420 to gain momentum.
Bitcoin Cash Price Upside Hurdle
Yesterday, we saw a major hurdle for Bitcoin cash price near $425 against the US Dollar. The price failed to break the stated $425 resistance area and declined. A low was formed below the $410 support as the price traded towards the $405 level. The downside was limited as the price started a correction after trading as low as $405.5. It broke the 23.6% Fib retracement level of the last decline from the $454 high to $405 low.
However, any further gains above $420-425 won’t be easy. There are two bearish trend lines forming with resistance near $420 on the hourly chart of BCH/USD. These trend lines near $420-425 might continue to stop upsides. The 38.2% Fib retracement level of the last decline from the $454 high to $405 low is also at $423 to act as a resistance. The most important resistance on the upside remains at $430-431. It is now close to the 50% Fib retracement level of the last decline from the $454 high to $405 low.
As long as the price is below $430, it might continue to range trade with a minor bearish bias.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is struggling to remain in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now just above the 50 level.
Major Support Level – $405
Major Resistance Level – $425-430
Charts courtesy – Trading View, Kraken