Key Points
- Bitcoin cash price continues to struggle to break the $1,040 resistance against the US Dollar.
- There is a major bearish trend line forming with resistance near $1,020 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair has to move above the $1,020 and $1,040 resistance levels to gain further in the near term.
Bitcoin cash price is consolidating below $1,040 against the US Dollar. BCH/USD must gather momentum above $1,040 to accelerate gains.
Bitcoin Cash Price Resistance
During the past few sessions, there were mostly ranging moves below $1,040 in bitcoin cash price against the US Dollar. The price tested the $1,030 level recently, but it failed to move past the stated resistance. As a result, there was a slight downside reaction and the price moved towards the $980 level. During the decline, it broke the 38.2% Fib retracement level of the last leg from the $945 low to $1,033 high.
However, the decline was limited as buyers appeared around the $980 support area. Moreover, the 50% Fib retracement level of the last leg from the $945 low to $1,033 high also acted as a support. At the moment, the price is trading nicely above the $980 level. Below this, the next major support is at $950 and the 100 hourly simple moving average. On the upside, there is a major bearish trend line forming with resistance near $1,020 on the hourly chart of the BCH/USD pair.
Looking at the chart, the price is facing a monster barrier near the $1,020 and $1,040 resistance levels. A break and close above $1,040 is needed for buyers to take control. Above $1,040, the next stop for buyers could be around the $1,100 level.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently moving higher towards the 55 level.
Major Support Level – $950
Major Resistance Level – $1,040