- Bitcoin cash price formed a low at $343.6 and started correcting higher against the US Dollar.
- There is a major bearish trend line forming with resistance near $365 on the hourly chart of BCH/USD (data feed from Kraken) are intact.
- The price might correct a few points higher, but remains in the bearish zone below $380.
Bitcoin cash price fell sharply this week against the US Dollar. BCH/USD is now facing a major resistance area near $365 on the upside.
Bitcoin Cash Price Resistance
The past two sessions came as a relief for Bitcoin cash price as it corrected towards $370 against the US Dollar. The price recently traded as low as $343.6 and failed to hold the yesterday low of $346. At the moment, the price is consolidating above the $340 level. An initial resistance on the upside is around the 23.6% Fib retracement level of the last drop from the $406 high to $343 low. If the price continues to correct higher, it might face heavy offers near $370-380.
Moreover, there is a major bearish trend line forming with resistance near $365 on the hourly chart of BCH/USD. An intermediate resistance is around the 38.2% Fib retracement level of the last drop from the $406 high to $343 low. A break and close above the $370 level might call for an extended move towards the $390 level. On the downside, there is a connecting bullish trend line forming with support at $350.
Should there be a break below $350, the price would retest the last low of $343. The overall bias is bearish as long as the price is below $400.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is showing no major signs of a recovery.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is correcting higher towards the 45 level.
Major Support Level – $340
Major Resistance Level – $370
Charts courtesy – Trading View, Kraken