- Bitcoin cash price continued to correct lower and moved below the $1500 support against the US Dollar.
- There is a major bearish trend line forming with resistance near $1480 on the hourly chart of BCH/USD (data feed from Kraken).
- The price might extend its decline and it could even break the $1400 support in the near term.
Bitcoin cash price is moving lower towards $1400 against the US Dollar. BCH/USD might extend declines and remains at risk of more losses.
Bitcoin Cash Price Correction
Yesterday, we saw the start of a downside correction below $1600 in bitcoin cash price against the US Dollar. The price continued to correct lower and it recently moved below the $1500 support area. There was a break of the 61.8% Fib retracement level of the last upside wave from the $1148 low to $1750 high. It has opened the doors for more declines since the price is now below $1500.
At present, the price is trading near $1450 and remains at a risk of more declines. The next major support is near the $1400 level, which might attempt to protect further slides. On the upside, there is a major bearish trend line forming with resistance near $1480 on the hourly chart of BCH/USD. The pair might fail to break the trend line and the 23.6% Fib retracement level of the recent drop from the $1718 high to $1450 low. Above the trend line resistance, the $1550 level is a crucial resistance.
The mentioned $1550 resistance is close to the 38.2% Fib retracement level of the recent drop from the $1718 high to $1450 low. The overall trend is short-term bearish with chances of a test of $1400.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has moved into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is reaching the 20 level.
Major Support Level – $1400
Major Resistance Level – $1500
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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