BUY BITCOIN
Key Points
- Bitcoin cash price started an upside recovery from $1494, but failed to gain momentum against the US Dollar.
- There was a break above a connecting bearish trend line with resistance at $1600 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair traded higher, but failed to retain momentum and started a new downside move below $1600.
Bitcoin cash price is struggling to gain momentum above $1650-1700 against the US Dollar. BCH/USD may resume its downtrend and it could even break the $1500 support.
Bitcoin Cash Price Resistance
There was a minor recovery initiated in bitcoin cash price from the $1500 swing high against the US Dollar. The price moved higher after trading as low as $1494. It moved above the $1550 and $1600 resistance levels. There was also a break above a connecting bearish trend line with resistance at $1600 on the hourly chart of BCH/USD. The pair traded past the $1650 level, but it failed to gain momentum.
Even the 23.6% Fib retracement level of the last drop from the $2123 high to $1494 low was broken. However, BCH buyers failed to break the $1680-1700 resistance levels. It traded close to the 38.2% Fib retracement level of the last drop from the $2123 high to $1494 low before starting a fresh downside wave. BCH is currently trading below the $1600 level and it looks like the price could decline further.
On the downside, the most important support is at $1500. An hourly close below $1500 could ignite further declines in BCH toward the $1420 level in the short term. On the upside, the price faces a strong resistance at $1680-1700.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is losing momentum and is moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.
Major Support Level – $1500
Major Resistance Level – $1680
Charts courtesy – Trading View, Kraken
