Key Points
- Bitcoin cash price extended declines and moved below the $1,100 support against the US Dollar.
- There is a new connecting bearish trend line forming with resistance at $1.110 on the hourly chart of BCH/USD (data feed from SimpleFX).
- The pair is likely to extend declines and it could even break the $1,000 level in the near term.
Bitcoin cash price is in trouble as it broke $1,100 against the US Dollar. BCH/USD remains in a downtrend and it could soon break the $1,000 level.
Bitcoin Cash Price Decline
There was a sharp increase in selling pressure on bitcoin cash price as it declined from $1,150 against the US Dollar. The decline was such that the price traded below a major support area at $1,100. The price extended declines and traded towards the $1,000 level. It is now well below the $1,150 pivot level and the 100 hourly simple moving average.
The recent low was formed near $1,020 before the price started a minor upside move. It traded above the 23.6% Fib retracement level of the last decline from the $1,170 high to $1,020 low. However, the upside move was capped by the $1,100 level. The mentioned $1,100 level was a support earlier and it is now acting as a resistance. Moreover, the 50% Fib retracement level of the last decline from the $1,170 high to $1,020 low at $1,095 acted as a resistance. On the upside, there is also a new connecting bearish trend line forming with resistance at $1.110 on the hourly chart of BCH/USD.
On the downside, the pair is likely to find bids near $1,040. However, the most important support is near $1,000, which is also at risk of a downside break.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 50 level.
Major Support Level – $1,000
Major Resistance Level – $1,100
Charts courtesy – SimpleFX
