Key Points
- Bitcoin cash price declined heavily and even broke the $100 support against the US Dollar.
- There is a crucial bearish trend line formed with resistance at $120 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently correcting higher, but it is likely to struggle near the $120 resistance.
Bitcoin cash price fell sharply below $150 and $100 against the US Dollar. BCH/USD may correct higher in the short term towards $115 or $120 resistance.
Bitcoin Cash Price Analysis
This past week, there was a major downside move below the $150 support in bitcoin cash price against the US Dollar. The BCH/USD pair declined heavily and broke the $140 and $120 support levels. The decline was such that the price even broke the $100 support and settled below the 100 simple moving average (4-hours). A new yearly low was formed at $92 and later the price started consolidating losses.
An initial resistance is near the $105 level. It is the 23.6% Fib retracement level of the recent decline from the $145 high to $92 low. Above $105, there is a strong resistance formed near the $115-120 zone. There is also a crucial bearish trend line formed with resistance at $120 on the 4-hours chart of the BCH/USD pair. The 50% Fib retracement level of the recent decline from the $145 high to $92 low is also around $120. Therefore, if the price continues to move higher, it is likely to face sellers near the $115 and $120 resistance levels.
Looking at the chart, BCH price is clearly in a major downtrend below $120 and $125. If there is a fresh decline below $100, the price may even break the $92 swing low in the near term.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slowly moving in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently just near the 30 level.
Major Support Level – $92
Major Resistance Level – $120