BUY BITCOIN
Key Points
- Bitcoin cash price failed to hold gains above $540 and declined sharply against the US Dollar.
- There was a break below a major bullish trend line with support at $530 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair declined heavily and retested the $500 and $510 support levels where buyers emerged.
Bitcoin cash price formed a top near the $575 level and declined against the US Dollar. BCH/USD is holding the $500 support, but it remains at risk of more losses.
Bitcoin Cash Price Decline
Yesterday, we saw a sharp upward move above the $550 level in bitcoin cash price against the US Dollar. However, the BCH/USD pair failed to stay above the $560 level, formed a top at $574, and later declined sharply. There was a sharp downside move and the price declined back below the $550 level. There was also a close below the $550 support and the 100 hourly simple moving average.
Besides, there was a break below a major bullish trend line with support at $530 on the hourly chart of the BCH/USD pair. The pair also traded below the $520 support and declined towards $500. A low was formed at $509 and the price is currently consolidating losses. It is testing the 23.6% Fib retracement level of the last drop from the $574 high to $509 low. Above the $525 resistance, the price could trade towards the $540 resistance. It now represents the 50% Fib retracement level of the last drop from the $574 high to $509 low. Moreover, the 100 hourly simple moving average is also positioned near the $545 level to prevent gains.
Looking at the chart, BCH price is back to where it started around $500. Should there be a break below $500, the price may perhaps decline to $480.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.
Major Support Level – $500
Major Resistance Level – $540
