Key Points
- Bitcoin cash price broke many supports and traded below $800 against the US Dollar.
- There is a crucial bearish trend line in place with resistance near $820 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to continue its decline as long as it is below $850 and $900 resistance levels.
Bitcoin cash price declined heavily below $900 against the US Dollar. BCH/USD may perhaps accelerate declines towards the $700 level in the near term.
Bitcoin Cash Price Decline
This past week, there was a major bearish reaction from the $910 resistance zone in bitcoin cash price against the US Dollar. The price started a major downside move and dropped below the $850 and $800 support levels. The decline was such that the price even broke the $750 support zone. A low was formed near $721 and the price is now trading well below the 100 simple moving average (4-hours).
At the moment, the price is correcting higher and is trading near $740-750. The 23.6% Fib retracement level of the last decline from the $928 high to $721 low is acting as a resistance. On the upside, there are many hurdles for buyers around the $820 level. The stated level was a support earlier, and now it coincides with the 50% Fib retracement level of the last decline from the $928 high to $721 low. Moreover, there is a crucial bearish trend line in place with resistance near $820 on the 4-hours chart of the BCH/USD pair.
Looking at the chart, the price may face a lot of barriers near $820. On the downside, the recent low of $721 is a short-term support. A break below this could push the price towards the $700 handle.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slowly reducing its bearish slope.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 30 level.
Major Support Level – $700
Major Resistance Level – $820
Do not use a 4 hour MACD to assess the overall trend for bitcoin. The daily and weekly MACD are calling for lower prices. Best to prepare for an extended bear market. Rallies will be fleeting.