Key Points
- Bitcoin cash price declined sharply and moved below the $1,000 support against the US Dollar.
- There was a break below a crucial bullish trend line with support at $1,010 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is now trading below the $900 level and it remains at a risk of more losses.
Bitcoin cash price is under a lot of pressure below $1,000 against the US Dollar. BCH/USD is likely to extend declines below the $900 level.
Bitcoin Cash Price Decline
There was a solid rise in selling pressure on bitcoin cash price, which pushed it below $1,000 against the US Dollar. The price declined sharply after it failed to move above the $1,050 level and the 100 hourly simple moving average. Sellers got control and pushed the price below the $950 and $900 support levels, which is a bearish sign in the near term.
More importantly, there was a break below a crucial bullish trend line with support at $1,010 on the hourly chart of the BCH/USD pair. The pair traded as low as $870 recently and it remains at a risk of more losses. An initial resistance on the upside is around the 23.6% Fib retracement level of the last decline from the $1,060 high to $870 low. However, the most important resistance is now around $960-970. The 50% Fib retracement level of the last decline from the $1,060 high to $870 low is also near $970.
Any major upside correction from the current levels could face sellers near $960 and $970. Above $970, the $1,000 level is a key barrier. On the downside, the recent low of $870 is a short term support followed by $850.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is showing a lot of bearish signs.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now in the oversold levels.
Major Support Level – $850
Major Resistance Level – $970
Charts courtesy – Trading View
