Key Points
- Bitcoin cash price failed to break the $550 resistance and declined recently against the US Dollar.
- There was a break below a key bullish trend line with support at $525 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is under pressure and it may continue to move down towards the $500 support.
Bitcoin cash price failed near key resistances against the US Dollar. BCH/USD is heading south and there could be more losses towards the $500 level.
Bitcoin Cash Price Analysis
Yesterday, we discussed a possible upside move if bitcoin cash price clear the $550 resistance against the US Dollar. The BCH/USD pair failed to gain traction above the $550 level. There was also a rejection noted near the 50% Fib retracement level of the last decline from the $591 high to $508 low. The price started a fresh downside move and traded below the $530 support.
During the decline, there was a break below a key bullish trend line with support at $525 on the hourly chart of the BCH/USD pair. The pair also cleared the last swing low at $520. It tested the 1.236 Fib extension level of the last wave from the $520 low to $549 high. If sellers remain in control, there could be more losses in the near term towards the $510 and $500 support levels. An intermediate support is at $502 and the 1.618 Fib extension level of the last wave from the $520 low to $549 high. On the upside, the $525-530 zone may now act as a resistance.
Looking at the chart, BCH price is now trading well below the 100 hourly SMA and $530. As long as there is no close above the 100 hourly SMA, there is a risk of more losses towards $500.
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 moving towards the 25 level.
Major Support Level – $500
Major Resistance Level – $530
