Bitcoin Cash Price Analysis: BCH/USD Losing Momentum

Aayush Jindal

1 year ago

2 mins read

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Key Points

Bitcoin cash price failed to hold gains above $1,220 and declined below $1,200 against the US Dollar.
There is a declining channel forming with resistance at $1,220 on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair is likely to extend the current decline and it could test the $1,150 support level.

Bitcoin cash price is back in a bearish zone below $1,220 against the US Dollar. BCH/USD is losing momentum and it could continue to move down towards $1,150.

Bitcoin Cash Price Decline

There was a rejection noted from the $1,300 resistance zone in bitcoin cash price against the US Dollar. The price formed a short-term top near $1,315 before starting a downside move. It declined and moved below the $1,250 and $1,220 support levels. The downside move was strong as the price also closed below the $1,220 support and the 100 hourly simple moving average.

During the decline, the price broke the 61.8% Fib retracement level of the last leg from the $1,165 low to $1,315 high. The current price action suggests that a close below $1,220 and the 100 hourly SMA was crucial. At the moment, there is a declining channel forming with resistance at $1,220 on the hourly chart of the BCH/USD pair. The pair could accelerate declines below the 76.4% Fib retracement level of the last leg from the $1,165 low to $1,315 high. The next support may well be the last swing low of $1,165, followed by the all-important $1,150.

Looking at the chart, the current downside move seems to be a bearish wave with a close below $1,210. Should the price correct higher from the current levels, the $1,220 and $1,250 levels are likely to prevent upsides.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is back gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 40 level.

Major Support Level – $1,150

Major Resistance Level – $1,220

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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