Key Points
- Bitcoin cash price failed to recover and declined further below $740 against the US Dollar.
- This week’s highlighted crucial bearish trend line is intact with resistance at $745 is intact on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to extend the current decline back towards the $680 level in the near term.
Bitcoin cash price declined heavily below $740 against the US Dollar. BCH/USD remains at a risk of more losses below the $700 level.
Bitcoin Cash Price Decline
Yesterday, there was a minor recovery above the $750 level in bitcoin cash price against the US Dollar. However, the BCH/USD pair failed to hold gains and declined back below $750 and $740 support levels. It traded close to the $700 level and formed a low at $705. The current bias is very negative since the price is placed well below the $750 level and the 100 hourly simple moving average.
If the price breaks the $705 low, it could decline sharply in the near term. The next support below $700 is at $680, which may act as a decent buy zone. Below this, the price could revisit the $650 support area. On the upside, an initial resistance is the 23.6% Fib retracement level of the last drop from the $840 swing high to $705 low. More importantly, this week’s highlighted crucial bearish trend line is intact with resistance at $745 is intact on the hourly chart of the BCH/USD pair. Above the trend line, the next resistance is near the $770 level and the 100 hourly SMA.
Looking at the chart, the price is clearly in a major downtrend below $750. Should there be a break below $705, it won’t be easy for BCH buyers to bounce back.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is placed heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now near the oversold levels.
Major Support Level – $705
Major Resistance Level – $745
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