- Bitcoin cash price is struggling to hold $540 against the US Dollar, and might test $500 once again.
- There is a descending channel pattern with current resistance at $580 forming on the hourly chart of BCH/USD (data feed from Kraken).
- The price is likely to continue moving down and could even test the next important support at $500.
Bitcoin cash price is once again heading towards $500 against the US Dollar. More losses are likely in BCH/USD if sellers remain in control below $580.
Bitcoin Cash Price Decline
Yesterday, we saw how Bitcoin cash price was back to square one after failing to break $620 against the US Dollar. The price remained in the bearish zone during the past three sessions and traded below the $540 support area. Earlier, the $550 support acted as a barrier for sellers, but failed to hold losses. There was a test of the 1.236 extension of the last wave from the $550 low to $627 high.
However, buyers failed to hold the $532 extension level as well. It resulted in a decline below $532. It seems like the price is now heading towards the 1.618 extension of the last wave from the $550 low to $627 high at $503. The $503-500 support area is very important since the last bounce was from $501. There is also a descending channel pattern with current resistance at $580 forming on the hourly chart of BCH/USD.
Therefore, it won’t be easy for buyers to take back control as long as the price is below $580. On the upside, an initial resistance is near $550, followed by the channel resistance at $580.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now approaching the oversold levels.
Major Support Level – $500
Major Resistance Level – $580
Charts courtesy – Trading View, Kraken