Key Points
- Bitcoin cash price fell sharply and even broke the $700 handle against the US Dollar.
- There is a major bearish trend line formed with resistance near $735 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair may correct higher in the short term, but upsides are likely to be capped by $710-730.
Bitcoin cash price is back in a bearish trend below $750 against the US Dollar. BCH/USD is now facing many challenges on the upside above $710.
Bitcoin Cash Price Resistances
Yesterday, there was a sharp downside move from well above $750 in bitcoin cash price against the US Dollar. The BCH/USD pair tumbled by more than $50 and broke the $730 and $700 supports. It traded as low as $684 and it is currently consolidating losses. An initial resistance is near the 23.6% Fib retracement level of the last drop from the $779 high to $684 low near $706.
However, there are many resistances on the upside above the $706 level. The previous support at $710 is a key barrier. Moreover, there is a major bearish trend line formed with resistance near $735 on the hourly chart of the BCH/USD pair. The same trend line is close to the 50% Fib retracement level of the last drop from the $779 high to $684 low. More importantly, the 100 hourly simple moving average is also positioned near the $735 resistance. Therefore, if the price corrects higher, it could face many challenges around $710 and $730.
Looking at the chart, the price is back in a bearish trend and if it fails to move above $710, it could decline further. On the downside, a break below $685 may push the price towards the $650 support.
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 correcting higher and is currently near 40.
Major Support Level – $685
Major Resistance Level – $735