- Bitcoin cash price failed to stay above the $2400 support area and moved down against the US Dollar.
- There is a major bearish trend line forming with resistance at $2400 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair is likely to continue its decline towards $2100 since it is now well below the 100 hourly simple moving average.
Bitcoin cash price is moving lower sharply from $2550 against the US Dollar. BCH/USD could extend declines and may even test the $2100 level.
Bitcoin Cash Price Resistance
Yesterday, we saw a recovery wave in bitcoin cash price around the $2500 level against the US Dollar. However, the price failed to stay above the $2500 support since the $2550 level acted as a major resistance. As a result, there was a downside reaction from $2550. The price declined and broke a few important support levels including $2460 and $2400.
There was a break below the 61.8% Fib retracement level of the last upside wave from the $1997 low to $2750 high. BCH is currently trading just above the $2200 level and it seems like it may extend declines. The next major support is around the $2100 level. An intermediate support is around the 76.4% Fib retracement level of the last upside wave from the $1997 low to $2750 high. Below the mentioned $2100, the price is likely to retest the $2000 support and the $1997 swing low.
On the upside, there is a major bearish trend line forming with resistance at $2400 on the hourly chart of BCH/USD. The trend line resistance and the $2350 hurdle are likely to prevent gains in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently heading towards the oversold levels.
Major Support Level – $2100
Major Resistance Level – $2400
Charts courtesy – Trading View, Kraken