- Bitcoin cash price declined further and traded towards the $1,250 support against the US Dollar.
- There is a new bearish trend line forming with resistance at $1,320 on the hourly chart of BCH/USD (data feed from SimpleFX).
- The pair is currently correcting higher, but it could face sellers near the $1,320 and $1,350 levels.
Bitcoin cash price faced an increased selling pressure against the US Dollar. BCH/USD declined towards $1,250 and it is currently correcting higher.
Bitcoin Cash Price Downtrend
Yesterday, there was no major correction in bitcoin cash price above the $1,400 level against the US Dollar. The price declined further and broke yesterday’s low of $1,312. It even traded below the $1,300 level and moved towards the $1,250 support. A new low was formed at $1,251 from where the price started a short-term upside correction.
An initial resistance is around the 23.6% Fib retracement level of the last decline from the $1,508 high to $1,251 low. There are many resistances on the upside and any major correction could face sellers near $1,350. To the topside, there is also a new bearish trend line forming with resistance at $1,320 on the hourly chart of BCH/USD. The trend line resistance is close to the 38.2% Fib retracement level of the last decline from the $1,508 high to $1,251 low. Therefore, if the price corrects higher further, it is likely to face sellers near the $1,300 and $1,320 level. Above $1,320, the next major upside hurdle is at $1,350.
On the downside, the recent low of $1,251 is a major support. It won’t be easy for sellers to break the $1,250 support zone. Below $1,250, the next support sits at $1,200.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is strongly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently correcting higher towards the 35 level.
Major Support Level – $1,250
Major Resistance Level – $1,320
Charts courtesy – SimpleFX