Bitcoin Cash Price Analysis: Can BCH/USD Hold 100 SMA?

Aayush Jindal

1 year ago

2 mins read

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Key Points

Bitcoin cash price started a downside correction from $1,200 and declined below $1,100 against the US Dollar.
There was a break below a major bullish trend line with support at $1,140 on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair has to stay above the $1,070 level and the 100 hourly simple moving average to avoid more losses.

Bitcoin cash price trimmed most of its gains against the US Dollar. BCH/USD is now below $1,140 and is struggling to hold the 100 hourly SMA.

Bitcoin Cash Price Support

After trading above the $1,200 level, bitcoin cash price faced sellers against the US Dollar. The price formed a top at $1,209 and started a downside move. It broke a few important support near the $1,180 and $1,140 levels. Moreover, there was even a break below the 50% Fib retracement level of the last leg from the $1,057 low to $1,209 high.

The slide was substantial as the price moved below the $1,100 support. More importantly, there was a break below a major bullish trend line with support at $1,140 on the hourly chart of the BCH/USD pair. The pair is currently trading just above the $1,070 support and the 100 hourly simple moving average. The stated $1,070 level already acted as a strong support once, which is why it holds a lot of importance. If the price fails to stay above $1,070 and the 100 hourly SMA, there could be more declines towards $1,040 and $1,000.

Looking at the chart, the next major support sits near the 1.236 Fib extension level of the last leg from the $1,057 low to $1,209 high at $1,020. Therefore, the price must hold the 100 hourly SMA and $1,070 to avoid more slides.

Looking at the technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving lower towards the 30 level.

Major Support Level – $1,070

Major Resistance Level – $1,140

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.

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