Key Points
- Bitcoin cash price failed to hold gains above $1,220 and declined below $1,200 against the US Dollar.
- There is a declining channel forming with resistance at $1,220 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to extend the current decline and it could test the $1,150 support level.
Bitcoin cash price is back in a bearish zone below $1,220 against the US Dollar. BCH/USD is losing momentum and it could continue to move down towards $1,150.
Bitcoin Cash Price Decline
There was a rejection noted from the $1,300 resistance zone in bitcoin cash price against the US Dollar. The price formed a short-term top near $1,315 before starting a downside move. It declined and moved below the $1,250 and $1,220 support levels. The downside move was strong as the price also closed below the $1,220 support and the 100 hourly simple moving average.
During the decline, the price broke the 61.8% Fib retracement level of the last leg from the $1,165 low to $1,315 high. The current price action suggests that a close below $1,220 and the 100 hourly SMA was crucial. At the moment, there is a declining channel forming with resistance at $1,220 on the hourly chart of the BCH/USD pair. The pair could accelerate declines below the 76.4% Fib retracement level of the last leg from the $1,165 low to $1,315 high. The next support may well be the last swing low of $1,165, followed by the all-important $1,150.
Looking at the chart, the current downside move seems to be a bearish wave with a close below $1,210. Should the price correct higher from the current levels, the $1,220 and $1,250 levels are likely to prevent upsides.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 40 level.
Major Support Level – $1,150
Major Resistance Level – $1,220