Key Points
- Bitcoin cash price failed to break the $680 resistance and declined sharply against the US Dollar.
- Yesterday’s highlighted key bullish trend line with support at $662 was breached on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is now well below the $650 support and is just below the 100 hourly simple moving average.
Bitcoin cash price declined back below $650 against the US Dollar. BCH/USD has to bounce back above 100 hourly SMA to avoid further declines.
Bitcoin Cash Price Decline
Yesterday, we saw a decent upside move above the $650 level in bitcoin cash price against the US Dollar. The price traded towards the $680 level, which acted as a solid hurdle. Buyers failed to push the price above $680-682, which resulted in a downside move. There was a break below the 50% Fib retracement level of the last wave from the $600 low to $682 high.
More importantly, yesterday’s highlighted key bullish trend line with support at $662 was breached on the hourly chart of the BCH/USD pair. The pair is currently trading well below the $650 support, which is a bearish sign. Moreover, the price is now trading just below the 100 hourly simple moving average and $640. It is holding the 61.8% Fib retracement level of the last wave from the $600 low to $682 high. Therefore, the price must stay above the $625 level and it should soon break the 100 hourly SMA.
If BCH buyers fail to move the price back above $640 and 100 SMA, there are chances of more losses. A break below the $625 level could even push the price back towards $600 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 50 level.
Major Support Level – $625
Major Resistance Level – $650
Charts courtesy – Trading View