Key Points
- Bitcoin cash price is under pressure and it recently traded below the $1240 support against the US Dollar.
- There are two bearish trend lines forming with resistance near $1350 and $1480 on the hourly chart of BCH/USD (data feed from Kraken).
- The price is currently struggling to recover above the $1350 level and upsides remain capped.
Bitcoin cash price declined further towards $1200 against the US Dollar. BCH/USD is likely to struggle further with resistances near $1360 and $1400.
Bitcoin Cash Price Hurdles
There was no recovery in bitcoin cash price as it declined further towards $1200 against the US Dollar. The price failed to hold yesterday’s low near $1280. It traded below the $1250 and $1240 support levels and traded close to the $1200 handle. A low was formed near $1203 before a minor correction wave was initiated. There was a move above the 23.6% Fib retracement level of the last drop from the $1605 high to $1203 low.
However, the upside move found resistance near $1360. There are two bearish trend lines forming with resistance near $1350 and $1480 on the hourly chart of BCH/USD. The first trend line coincides with the 38.2% Fib retracement level of the last drop from the $1605 high to $1203 low. Therefore, the $1350-1360 levels are important for the current correction. Above $1360, the price might attempt a test of the $1400 level.
The 38.2% Fib retracement level of the last drop from the $1605 high to $1203 low is near $1406 to act as a hurdle. On the downside, the $1200 support zone holds a lot of importance. BCH must stay above it to avoid declines toward $1050.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly in the bullish zone as per the correction.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is still below the 50 level.
Major Support Level – $1200
Major Resistance Level – $1360
Charts courtesy – Trading View, Kraken
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