- Bitcoin cash price formed a low at $343.6 and started correcting higher against the US Dollar.
- There is a major bearish trend line forming with resistance near $365 on the hourly chart of BCH/USD (data feed from Kraken) are intact.
- The price might correct a few points higher, but remains in the bearish zone below $380.
Bitcoin cash price fell sharply this week against the US Dollar. BCH/USD is now facing a major resistance area near $365 on the upside.
Bitcoin Cash Price Resistance
The past two sessions came as a relief for Bitcoin cash price as it corrected towards $370 against the US Dollar. The price recently traded as low as $343.6 and failed to hold the yesterday low of $346. At the moment, the price is consolidating above the $340 level. An initial resistance on the upside is around the 23.6% Fib retracement level of the last drop from the $406 high to $343 low. If the price continues to correct higher, it might face heavy offers near $370-380.
Moreover, there is a major bearish trend line forming with resistance near $365 on the hourly chart of BCH/USD. An intermediate resistance is around the 38.2% Fib retracement level of the last drop from the $406 high to $343 low. A break and close above the $370 level might call for an extended move towards the $390 level. On the downside, there is a connecting bullish trend line forming with support at $350.
Should there be a break below $350, the price would retest the last low of $343. The overall bias is bearish as long as the price is below $400.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is showing no major signs of a recovery.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is correcting higher towards the 45 level.
Major Support Level – $340
Major Resistance Level – $370
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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