Key Points
- Bitcoin cash price failed to hold gains above the $540 and $545 support levels against the US Dollar.
- This week’s followed key bullish trend line was breached with support at $544 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently trading below the $540 support and it could decline further in the near term.
Bitcoin cash price declined below the $540 key support against the US Dollar. BCH/USD may perhaps continue to move down towards the $520 and $510 levels.
Bitcoin Cash Price Decline
We saw a downside correction from the $576 swing high in bitcoin cash price yesterday against the US Dollar. The BCH/USD pair declined below the $550 support area to move into a short-term bearish zone. Later, sellers gained control and pushed the price below an important support near $540. There was also a break below the 61.8% Fib retracement level of the last leg from the $510 swing low to $575 high.
The price settled below the $545 level and the 100 hourly simple moving average. Lastly, this week’s followed key bullish trend line was breached with support at $544 on the hourly chart of the BCH/USD pair. The pair traded as low as $524 and later corrected a few points. It moved above the 23.6% Fib retracement level of the last drop from the $570 high to $524 low. However, the price is facing resistance near $540 and a bearish trend line on the same chart.
Looking at the chart, BCH price seems to be struggling to move above the previous support area near $540. If it continues to struggle to settle above $540 and $550, it could continue to move down towards the $520 and $510 levels.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well below the 50 level.
Major Support Level – $510
Major Resistance Level – $550
