- Bitcoin cash price declined further and moved below the $1450 support area against the US Dollar.
- There is a new connecting bearish trend line forming with resistance near $1475 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might correct a few points in the near term, but upsides are likely to be capped by $1450-1480.
Bitcoin cash price is under pressure below $1500 against the US Dollar. BCH/USD might continue to decline as long as the price is below $1500.
Bitcoin Cash Price Resistance
As we discussed yesterday, there were further declines in bitcoin cash price below $1460-1450 against the US Dollar. The price declined below the $1400 handle as well to test the $1300-1280 support area. A low was formed at $1280.8 from where the price started an upside correction. It has moved above the 23.6% Fib retracement level of the last decline from the $1610 high to $1280 low.
However, any further gains are likely to be capped by resistances such as $1450, $1475 and $1500 in the near term. An immediate resistance is around the 50% Fib retracement level of the last decline from the $1610 high to $1280 low at $1445. Above $1445, the $1450 level and a new connecting bearish trend line with resistance near $1475 on the hourly chart of BCH/USD are likely to prevent upsides. Moreover, the 61.8% Fib retracement level of the last decline from the $1610 high to $1280 low is around $1484 to act as a major hurdle.
Therefore, it seems like there are many resistances on the upside toward $1500. As long as the price is below the $1500 level, it remains in the bearish zone.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has gained strength in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.
Major Support Level – $1280
Major Resistance Level – $1475
Charts courtesy – Trading View, Kraken