Bitcoin Cash Price Technical Analysis – BCH/USD Failed Upside Attempt

Bitcoin Cash Price Technical Analysis BCH USD

Key Points

  • Bitcoin cash price corrected higher but it faced sellers near the $2130 level against the US Dollar.
  • There was a break below a key bullish trend line with support at $1950 on the hourly chart of BCH/USD (data feed from Kraken).
  • The pair may correct further in the near term as long as it is below $2100 and the 100 hourly simple moving average.

Bitcoin cash price failed to settle above $2100 against the US Dollar. BCH/USD is again correcting lower and is trading below the $2000 level.

Bitcoin Cash Price Resistance

Recently, we saw a decent recovery above $1800 in bitcoin cash price against the US Dollar. The price traded above the $2000 level, but it failed to settle above the $2100 level. It made a top at $2130 and started a downside correction. During the downside, there was a break below the 23.6% Fib retracement level of the last wave from the $1349 low to $2131 high.

More importantly, there was a break below a key bullish trend line with support at $1950 on the hourly chart of BCH/USD. The pair moved down and even broke the $1800 support and the 100 hourly simple moving average. It has opened the doors for more losses below $1800. At the moment, the 50% Fib retracement level of the last wave from the $1349 low to $2131 high is acting as a support. Should there be a break below the $1700 support, there could be more declines toward the $1500 level.

Bitcoin Cash Price Technical Analysis BCH USD

On the upside, the broken support at $2000 and the 100 hourly SMA are likely to act as a resistance. Above $2000, the last high at $2131 may be tested in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is not showing any major bearish sign.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently below the 50 level.

Major Support Level – $1700

Major Resistance Level – $2000

 

Charts courtesy – Trading View, Kraken

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.


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