Key Points
- Bitcoin cash price declined and broke the $730 and $705 support levels against the US Dollar.
- There is a major bearish trend line formed with resistance at $710 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair has to move above $710 and $730 to start a decent recovery in the near term.
Bitcoin cash price is under pressure below the $730 pivot level against the US Dollar. BCH/USD may perhaps recover, but upsides could be capped.
Bitcoin Cash Price Resistance
There was a crucial failure above the $750 level in bitcoin cash price against the US Dollar. The BCH/USD pair started a downside move and broke the $735 and $705 support levels. BCH even traded below the $700 level and formed a new monthly low at $684. It is currently trading well below the $730 pivot level and the 100 simple moving average (4-hours), which is a bearish sign.
It is currently correcting higher towards the $710 resistance. An initial resistance is around the 23.6% Fib retracement level of the last decline from the $771 high to $684 low. There is also a major bearish trend line formed with resistance at $710 on the 4-hours chart of the BCH/USD pair. However, there is a crucial barrier formed near $730-735. It coincides with the 61.8% Fib retracement level of the last decline from the $771 high to $684 low. It also presents the previous support zone near $735. Therefore, a break above $730-735 is needed for a larger upward move in BCH.
Looking at the chart, BCH price is under a lot of pressure below $730 and $710. If it slides further and breaks $684, it could extend losses towards the $665 level.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slowly heading into the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 40 level.
Major Support Level – $684
Major Resistance Level – $730
