Key Points
- Bitcoin cash price failed to move above the $1,080 level and declined against the US Dollar.
- There was a break below a connecting bullish trend line with support at $1,040 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently below the $1,000 support and the 100 hourly simple moving average, which is a bearish sign.
Bitcoin cash price has started a downside correction from $1,080 against the US Dollar. BCH/USD is now well below $1,000 and is eyeing further declines.
Bitcoin Cash Price Decline
After a decent upside move, bitcoin cash price struggled to move above the $1,080 level against the US Dollar. The price started a downside move and traded below the $1,050 support. The decline was substantial as there was a push below the 23.6% Fib retracement level of the last wave from the $840 swing low to $1,083 swing high. It has opened the doors for more losses below $1,000.
During the decline, there was a break below a connecting bullish trend line with support at $1,040 on the hourly chart of the BCH/USD pair. The pair settled below the $1,000 support and the 100 hourly simple moving average. The next support is around the $950 level. The stated $950 level is close to the 50% Fib retracement level of the last wave from the $840 swing low to $1,083 swing high. The pair is under a bearish pressure and it seems like it could even break the $950 support.
Below $950, the next crucial support sits around the $900 level. On the upside, the broken support near $1,000 and the 100 hourly SMA are likely to act as hurdles for buyers.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is now back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 50 level.
Major Support Level – $950
Major Resistance Level – $1,040
Charts courtesy – Trading View
