Key Points
- Bitcoin cash price corrected higher but it faced sellers near the $2130 level against the US Dollar.
- There was a break below a key bullish trend line with support at $1950 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair may correct further in the near term as long as it is below $2100 and the 100 hourly simple moving average.
Bitcoin cash price failed to settle above $2100 against the US Dollar. BCH/USD is again correcting lower and is trading below the $2000 level.
Bitcoin Cash Price Resistance
Recently, we saw a decent recovery above $1800 in bitcoin cash price against the US Dollar. The price traded above the $2000 level, but it failed to settle above the $2100 level. It made a top at $2130 and started a downside correction. During the downside, there was a break below the 23.6% Fib retracement level of the last wave from the $1349 low to $2131 high.
More importantly, there was a break below a key bullish trend line with support at $1950 on the hourly chart of BCH/USD. The pair moved down and even broke the $1800 support and the 100 hourly simple moving average. It has opened the doors for more losses below $1800. At the moment, the 50% Fib retracement level of the last wave from the $1349 low to $2131 high is acting as a support. Should there be a break below the $1700 support, there could be more declines toward the $1500 level.
On the upside, the broken support at $2000 and the 100 hourly SMA are likely to act as a resistance. Above $2000, the last high at $2131 may be tested in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is not showing any major bearish sign.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently below the 50 level.
Major Support Level – $1700
Major Resistance Level – $2000
Charts courtesy – Trading View, Kraken
