Key Points
- Bitcoin cash price crashed and declined more than $100 towards the $400 level against the US Dollar.
- There is a major bearish trend line in place with resistance at $470 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently consolidating above the $400 level and it could correct a few points in the near term.
Bitcoin cash price declined heavily below $450 against the US Dollar. BCH/USD tested the $400 support and it is currently consolidating losses.
Bitcoin Cash Price Analysis
Yesterday, we discussed chances of more declines below the $500 support in bitcoin cash price against the US Dollar. The BCH/USD pair did move down and broke the $500 and $480 support levels. The decline was nasty as the price dropped by around $100 and traded close to the $400 support. A new low was formed at $404 and the price is currently consolidating losses.
An initial resistance on the upside is $435. It represents the 23.6% Fib retracement level of the recent decline from the $538 high to $404 low. At the moment, it seems like a decent recovery is very unlikely above $435 and $440. Above $440, there is a major bearish trend line in place with resistance at $470 on the hourly chart of the BCH/USD pair. It also coincides with the 50% Fib retracement level of the recent decline from the $538 high to $404 low. On the other hand, if the price continues to move down, it could break the $400 support.
Looking at the chart, BCH price remains in a major downtrend below the $470 and $500 resistances. If sellers push the price below $400, there could be another sharp decline towards $350.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving higher toward the 40 level.
Major Support Level – $400
Major Resistance Level – $435