Key Points
- Bitcoin cash price struggled to recover and moved below the $950 level against the US Dollar.
- There is a crucial bearish trend line forming with resistance at $975 on the 4-hours chart of the BCH/USD pair (data feed from SimpleFX).
- The pair remains at a risk of more declines and it could even break the last low of $867 in the near term.
Bitcoin cash price is under pressure below $975 against the US Dollar. BCH/USD may continue to decline towards $850 and $800 support levels.
Bitcoin Cash Price Downtrend
This past week pushed bitcoin cash price in a bearish zone below $1,000 the US Dollar. There was a sharp downside move and the price settled below the $1,000 level and the 100 simple moving average (4-hours). There was a decline towards the $850 level and a low formed at $867. A recovery was initiated and the price moved above the 23.6% Fib retracement level of the last decline from the $1,160 high to $867 low.
However, the upside wave was protected by the $1,050 level. Moreover, the 61.8% Fib retracement level of the last decline from the $1,160 high to $867 low acted as a hurdle. At the moment, the price is trading lower and is well below the $950 level. On the upside, there is a crucial bearish trend line forming with resistance at $975 on the 4-hours chart of the BCH/USD pair. It seems like the pair may continue to decline and it could even break the $900 level in the near term.
Further below $900, the last low of $867 could be tested. Moreover, there is a risk of a test of $850, which is a major support zone.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is once again moving in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Level – $850
Major Resistance Level – $975
Charts courtesy – SimpleFX
