Key Points
- Bitcoin cash price is preparing for the next move with support on the downside at $2300 against the US Dollar.
- There is a crucial bearish trend line forming with current resistance at $2400 on the hourly chart of BCH/USD (data feed from Kraken).
- The pair might soon make the next move either above $2400 or below $2300 in the near term.
Bitcoin cash price is consolidating above $2200-2300 against the US Dollar. BCH/USD may soon break higher above the $2400 resistance for more gains.
Bitcoin Cash Price Upside Hurdle
There was a downside reaction in bitcoin cash price from the $2880 swing high against the US Dollar. The price traded below the $2500 support area and moved toward $2100. A low was formed at $2145 from where the price started an upside correction. It moved above the 23.6% Fib retracement level of the last decline from the $2890 high to $2145 low. However, the price struggled to move above the $2500 resistance.
There is also a crucial bearish trend line forming with current resistance at $2400 on the hourly chart of BCH/USD. The pair seems to be struggling to move above the trend line resistance at $2400. Moreover, the 50% Fib retracement level of the last decline from the $2890 high to $2145 low also acted as a hurdle for buyers. Above, the 100 hourly simple moving average is positioned at $2400 and is acting as a hurdle. It won’t be easy for buyers to break the $2400 resistance. Once they succeed, the price could accelerate above the $2600 level in the near term.
On the downside, there is a bullish trend line with support at $2300 on the same chart. A close below $2300 could negate the possible upside move and push the price toward $2100.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now below the 50 level.
Major Support Level – $2300
Major Resistance Level – $2400
Charts courtesy – Trading View, Kraken