BUY BITCOIN
Key Points
- Bitcoin cash price is under a lot of pressure as it broke the $540 support area against the US Dollar.
- There was a break below a crucial bullish trend line with support at $555 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may perhaps continue to move down if sellers manage to push the price below $500.
Bitcoin cash price declined below the key support at $540-550 against the US Dollar. BCH/USD is back in a bearish zone towards $500 and $480.
Bitcoin Cash Price Decline
There was a fresh start of a downside move from the $580 and $600 swing highs in bitcoin cash price against the US Dollar. The BCH/USD pair declined heavily and broke the $560 and $550 support levels. The decline was crucial as the price broke the 50% Fib retracement level of the last wave from the $470 swing low to $610 swing high. The price even settled below the $540 support and the 100 hourly simple moving average.
More importantly, there was a break below a crucial bullish trend line with support at $555 on the hourly chart of the BCH/USD pair. The pair traded towards the $500-510 support area where buyers emerged. However, the recent downside break seems significant since the price settled below $540. An initial support sits at the 76.4% Fib retracement level of the last wave from the $470 swing low to $610 swing high. Should buyers fail to defend the $505-510 support zone, there could be more losses in the near term.
Looking at the chart, BCH price is back in a bearish zone below $540. Therefore, there are even chances of more slides below the $510 and $500 supports levels in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is moving heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 40 level.
Major Support Level – $510
Major Resistance Level – $540
