- Bitcoin cash price declined and broke a major support area at $3400 against the US Dollar.
- Yesterday’s pointed connecting bullish trend line with support at $3450 was broken on the hourly chart of BCH/USD (data feed from Kraken).
- There is now a bearish trend line forming with current resistance at $3000 on the same chart.
Bitcoin cash price struggled to move above $4000 against the US Dollar. BCH/USD broke the $3400 support and moved into the bearish zone.
Bitcoin Cash Price Decline
During the past few days, we saw a decent rise in bitcoin cash price above $3500 against the US Dollar. However, the price failed to move above the $4000 level and started a downside move. First, there was a break below the 61.8% Fib retracement level of the last upside leg from the $2780 low to $3997 high. It opened the doors for more losses toward $3000. Second, there was a break below the $3400 support area, which ignited further declines.
More importantly, yesterday’s pointed connecting bullish trend line with support at $3450 was broken on the hourly chart of BCH/USD. The pair is now trading near the $2650 support and the 100 hourly simple moving average. There is a chance of a minor correction in the short term toward $3000. However, there is a new bearish trend line forming with current resistance at $3000 on the same chart. The trend line resistance could act as a strong resistance and will most likely prevent gains above $3000.
Therefore, if the pair corrects higher from the current levels, it may face sellers near $3000 and $3200. On the downside, a break below the 100 hourly SMA could push the price toward $2200.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is now back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently around the 30 level.
Major Support Level – $2650
Major Resistance Level – $3000
Charts courtesy – Trading View, Kraken
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
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