- Bitcoin cash price continues to slide and recently broke the $400 support area against the US Dollar.
- Yesterday’s highlighted two bearish trend lines with current resistance near $405 on the hourly chart of BCH/USD (data feed from Kraken) are major hurdles.
- The price might continue to decline and could even settle below $400 in the near term.
Bitcoin cash price is under a lot of pressure against the US Dollar. BCH/USD is now below $410 and looking to extend its decline below $400.
Bitcoin Cash Price Decline
There was no stopping sellers as Bitcoin cash price extended its decline and broke the $410-415 support area against the US Dollar. The price even broke the $400 handle to set the downside pace and formed a low at $392.6. At the moment, the price is currently correcting and consolidating near $400. However, it remains at a risk of more declines below $400 in the near term.
An initial resistance is around the 23.6% Fib retracement level of the last drop from the $427 high to $392 low. Moreover, yesterday’s highlighted two bearish trend lines with current resistance near $405 on the hourly chart of BCH/USD are crucial barriers. As long as these trend lines are in place near $405-410, buyers might continue to struggle. The 50% Fib retracement level of the last drop from the $427 high to $392 low is near $410 to act as a pivot.
The overall trend remains bearish below $420. A close above $420 is needed to overcome selling pressure. On the downside, a break of the $392 low would push the price towards the $380 support zone.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently in the bullish zone but with no momentum.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently below the 50 level.
Major Support Level – $400
Major Resistance Level – $410
Charts courtesy – Trading View, Kraken