Key Points
- Bitcoin cash price failed to hold the $950 support level and declined below $900 against the US Dollar.
- There are two key bearish trend lines forming with resistances at $940 and $960 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is under a lot of pressure and it is likely to break the $880 support as well.
Bitcoin cash price is trading lower towards $850 against the US Dollar. BCH/USD is now well below the $950 level and it remains at a risk of more losses.
Bitcoin Cash Price Decline
There was an increase in selling pressure as bitcoin cash price failed to hold the $950 support against the US Dollar. The mentioned $950 support was significant and a break below the same has the path for more losses. The price even broke the $920 and $900 levels to trade as low as $881 recently. Later, there was a minor upside correction and the price moved above the 23.6% Fib retracement level of the last drop from the $990 high to $881 low.
However, the upside move was capped by the $920 level. Moreover, the 38.2% Fib retracement level of the last drop from the $990 high to $881 low also prevented gains. BCH is once again declining and is currently flirting with the $900 level. To the topside, there are two key bearish trend lines forming with resistances at $940 and $960 on the hourly chart of the BCH/USD pair. The first trend line is also close to the 50% Fib retracement level of the last drop from the $990 high to $881 low.
Therefore, if the price corrects higher, it will most likely face sellers near $940-950. On the downside, the price may even break the $880 low for a test of $850.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving lower towards the 30 level.
Major Support Level – $880
Major Resistance Level – $940
Charts courtesy – Trading View