Key Points
- Bitcoin cash price failed to break an important resistance near $350 against the US Dollar.
- This week’s highlighted key bearish trend line with current resistance at $335 played well on the hourly chart of BCH/USD (data feed from Kraken).
- The price is now back below $320 and struggling to move higher towards $340-350.
Bitcoin cash price failed to gain momentum above $350 against the US Dollar. BCH/USD is now back in the bearish zone and struggling to hold $300.
Bitcoin Cash Price Upside Hurdle
Yesterday, there was a decent upside move in Bitcoin cash price above the $320 level against the US Dollar. The price gained pace towards $350, but failed to break the mentioned level. The most important thing was failure to clear this week’s highlighted key bearish trend line with current resistance at $335 on the hourly chart of BCH/USD. The pair was rejected from the trend line resistance at $350 and started a downside move.
It moved back below the $320 level and recently traded as low as $305.8. It is currently correcting higher, but facing sellers near the 38.2% Fib retracement level of the last decline from the $353 high to $305 low. Above $325, the next resistance is near $330 and the 50% Fib retracement level of the last decline from the $353 high to $305 low. However, the most significant hurdle remains around the same trend line resistance just below $340.
As long as the price is below the trend line and $350, it remains at a risk of further declines. On the downside, the $300 handle is crucial. A daily close below $300 would ignite sharp losses in the short term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently flat and attempting to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently just below the 50 level.
Major Support Level – $300
Major Resistance Level – $340
Charts courtesy – Trading View, Kraken
