BUY BITCOIN
Key Points
- Bitcoin cash price started a downside correction from $1,200 and declined below $1,100 against the US Dollar.
- There was a break below a major bullish trend line with support at $1,140 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair has to stay above the $1,070 level and the 100 hourly simple moving average to avoid more losses.
Bitcoin cash price trimmed most of its gains against the US Dollar. BCH/USD is now below $1,140 and is struggling to hold the 100 hourly SMA.
Bitcoin Cash Price Support
After trading above the $1,200 level, bitcoin cash price faced sellers against the US Dollar. The price formed a top at $1,209 and started a downside move. It broke a few important support near the $1,180 and $1,140 levels. Moreover, there was even a break below the 50% Fib retracement level of the last leg from the $1,057 low to $1,209 high.
The slide was substantial as the price moved below the $1,100 support. More importantly, there was a break below a major bullish trend line with support at $1,140 on the hourly chart of the BCH/USD pair. The pair is currently trading just above the $1,070 support and the 100 hourly simple moving average. The stated $1,070 level already acted as a strong support once, which is why it holds a lot of importance. If the price fails to stay above $1,070 and the 100 hourly SMA, there could be more declines towards $1,040 and $1,000.
Looking at the chart, the next major support sits near the 1.236 Fib extension level of the last leg from the $1,057 low to $1,209 high at $1,020. Therefore, the price must hold the 100 hourly SMA and $1,070 to avoid more slides.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving lower towards the 30 level.
Major Support Level – $1,070
Major Resistance Level – $1,140
