Bitcoin Cash Price Technical Analysis – BCH/USD Reverses Gains 2017-12-22

Aayush Jindal

1 year ago

2 mins read

Bitcoin Cash Price Technical Analysis BCH USD

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Key Points

Bitcoin cash price declined and broke a major support area at $3400 against the US Dollar.
Yesterday’s pointed connecting bullish trend line with support at $3450 was broken on the hourly chart of BCH/USD (data feed from Kraken).
There is now a bearish trend line forming with current resistance at $3000 on the same chart.

Bitcoin cash price struggled to move above $4000 against the US Dollar. BCH/USD broke the $3400 support and moved into the bearish zone.

Bitcoin Cash Price Decline

During the past few days, we saw a decent rise in bitcoin cash price above $3500 against the US Dollar. However, the price failed to move above the $4000 level and started a downside move. First, there was a break below the 61.8% Fib retracement level of the last upside leg from the $2780 low to $3997 high. It opened the doors for more losses toward $3000. Second, there was a break below the $3400 support area, which ignited further declines.

More importantly, yesterday’s pointed connecting bullish trend line with support at $3450 was broken on the hourly chart of BCH/USD. The pair is now trading near the $2650 support and the 100 hourly simple moving average. There is a chance of a minor correction in the short term toward $3000. However, there is a new bearish trend line forming with current resistance at $3000 on the same chart. The trend line resistance could act as a strong resistance and will most likely prevent gains above $3000.

Therefore, if the pair corrects higher from the current levels, it may face sellers near $3000 and $3200. On the downside, a break below the 100 hourly SMA could push the price toward $2200.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is now back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently around the 30 level.

Major Support Level – $2650

Major Resistance Level – $3000

Charts courtesy – Trading View, Kraken

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.