Key Points
- Bitcoin cash price did not correct higher and declined below the $1,200 support against the US Dollar.
- There are two bearish trend lines forming with resistance at $1,250 and $1,280 on the hourly chart of BCH/USD (data feed from SimpleFX).
- The pair may decline more in the near term and it could even break the $1,100 support level.
Bitcoin cash price declined further below $1,200 against the US Dollar. BCH/USD looks set to extend the current decline towards or below $1,100.
Bitcoin Cash Price Resistance
There was no stopping sellers as bitcoin cash price failed to correction above the $1,300 level against the US Dollar. The price declined and broke yesterday’s low to trade below the $1,200 level. It opened the doors for more losses and the price traded towards $1,150. A low was formed at $1,134 and it seems like the price is struggling to correct higher in the short term.
On the upside, the price is facing resistance near the 23.6% Fib retracement level of the last drop from the $1,325 high to $1,134 low. There are many resistances on the upside below the $1,300 level. More importantly, there are two bearish trend lines forming with resistance at $1,250 and $1,280 on the hourly chart of BCH/USD. The first bearish trend line is close to the 50% Fib retracement level of the last drop from the $1,325 high to $1,134 low. Therefore, a break above the $1,250 and $1,260 levels won’t be easy. Above $1,260, the second trend line at $1,280 is the next hurdle.
On the downside, the recent low of $1,134 is a short-term support. If the price breaks the stated level, it could test the $1,100 level.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is placed nicely in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently near the oversold levels.
Major Support Level – $1,100
Major Resistance Level – $1,250
Charts courtesy – SimpleFX
