- Bitcoin cash price declined after it failed to break the $445-450 resistance against the US Dollar.
- There is a connecting bearish trend line in place with resistance at $442 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair must stay above the $430-435 area to avoid a downside break towards $400.
Bitcoin cash price is under pressure below $445 against the US Dollar. BCH/USD may continue to face sellers near the $440-450 resistance zone.
Bitcoin Cash Price Analysis
During the past few days, there were multiple rejections near the $440 and $450 levels in bitcoin cash price against the US Dollar. The BCH/USD pair failed to gain momentum above $450 and remained in a bearish zone. The recent swing high was $445 and the price dipped below the $440 level. The price is currently trading well below the $440 level and the 100 hourly simple moving average.
It tested the $434 support area, which is acting as a strong buy zone. The price may bounce back above $438, but there are many hurdles on the upside. An initial resistance is the 23.6% Fib retracement level of the recent decline from the $445 high to $434 low. Additionally, there is a connecting bearish trend line in place with resistance at $442 on the hourly chart of the BCH/USD pair. The 50% Fib retracement level of the recent decline from the $445 high to $434 low is just below the trend line. More importantly, the 100 hourly SMA is near the $442 level. Therefore, if the price corrects higher, it could face a strong resistance near the $440-442 zone.
Looking at the chart, BCH price is also at a risk of a downside break below the $432-434 area. The next main support is at $425, followed by $400.
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 currently near the 40 level.
Major Support Level – $434
Major Resistance Level – $442