Reason to trust
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 is correcting lower from the swing high of $3307 against the US Dollar.
- There is a key bearish trend line forming with resistance at $2800 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair is struggling to move above the $2800 level and it may correct a bit on the downside.
Bitcoin cash price is correcting lower from $3307 against the US Dollar. BCH/USD might correct further towards the $2600 level in the near term.
Bitcoin Cash Price Correction
After a major upside move, bitcoin cash price traded toward the $3000 level against the US Dollar. However, the price failed to gain momentum above the $3000 level and formed a high at $3307. Later, a downside correction wave was initiated and the price moved below the 23.6% Fib retracement level of the last wave from the $1760 low to $3307 high. It seems like the current wave is a part of correction, but the price has to stay above $2500.
It has already tested the 50% Fib retracement level of the last wave from the $1760 low to $3307 high. The price is currently recoverin, but it is struggling to gain momentum above $2800 and the 100 hourly simple moving average. Moreover, there is also a key bearish trend line forming with resistance at $2800 on the hourly chart of BCH/USD. The trend line resistance at $2800 is acting as a major barrier for buyers. A close above the $2800 level is needed for buyers to gain traction.
On the downside, the 100 hourly SMA is a short-term support around $2700. The pair remains supported above the $2500 level. A break below $2500 would negate the current bullish bias.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is mostly flat in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently just above the 50 level.
Major Support Level – $2500
Major Resistance Level – $2800
Charts courtesy – Trading View, Kraken
