Bitcoin Cash Price Technical Analysis – BCH/USD Likely to Extend Declines

Aayush Jindal

1 year ago

2 mins read

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 failed to move above the $1,700 resistance and declined against the US Dollar.
Yesterday’s highlighted connecting bearish trend line with current resistance at $1,630 prevented gains on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair may continue to move down and it could even break the $1,550 support in the near term.

Bitcoin cash price is moving down once again against the US Dollar. BCH/USD could extend its decline towards the $1,485 level if sellers remain in control.

Bitcoin Cash Price Upside Hurdle

Yesterday, we discussed an upside correction above $1,650 in bitcoin cash price against the US Dollar. The price did move higher, but it failed to gain momentum above the $1,700 resistance. Sellers defended gains above the stated $1,700 and pushed the price back below the 100 hourly simple moving average. There was also a failure to break the 50% Fib retracement level of the last drop from the $1,835 high to $1,565 low.

More importantly, yesterday’s highlighted connecting bearish trend line with current resistance at $1,630 prevented gains on the hourly chart of the BCH/USD pair. The pair is currently under pressure and it broke the $1,600 support level. Additionally, it is about to break the $1,565 low, which could open the doors for more losses. The next stop for sellers could be the 1.618 Fib extension of the last wave from the $1,568 low to $1,701 high at $1,485. An intermediate support is at $1,536, which is the 1.236 Fib extension of the same wave.

Looking at the chart, the price is clearly under pressure below $1,600. If there is an upside correction, the $1,600 and $1,620 levels are likely to prevent gains.

Looking at the technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving lower below the 40 level.

Major Support Level – $1,485

Major Resistance Level – $1,630

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.