Bitcoin Cash Price Analysis: BCH/USD Turned Sell on Rallies


Key Points

  • Bitcoin cash price failed to clear the $650 resistance and dropped sharply against the US Dollar.
  • There is a key bearish trend line forming with resistance at $525 on the hourly chart of the BCH/USD pair (data feed from Kraken).
  • The pair is down more than $100 from highs and it turned sell on rallies near $525 and $550.

Bitcoin cash price dropped significantly below $550 against the US Dollar. BCH/USD is recovering, but it could face a lot of sellers near $525 and $550.

Bitcoin Cash Price Decline

Yesterday, we discussed an important resistance near $645 and $650 in bitcoin cash price against the US Dollar. The BCH/USD pair started a sharp downside move and declined more than $100 below $550. There was even a break below the $500 level and the price settled below the 100 hourly simple moving average. A low was formed near $485 and the price is currently correcting higher.

On the upside, an initial resistance is near the 23.6% Fib retracement level of the last decline from the $648 high to $485 low. There is also a key bearish trend line forming with resistance at $525 on the hourly chart of the BCH/USD pair. If the price breaks the trend line, it could trade towards the $550 resistance area. Above this, the next hurdle for buyers is near $565. It represents the 50% Fib retracement level of the last decline from the $648 high to $485 low. On the other hand, if the price fails to move above $525 and $550, it could drop again below $500.

Bitcoin Cash Price Analysis BCH USD

Looking at the chart, BCH price is under a lot of pressure and any recoveries are likely to be capped near $525, $530 or $550.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slowly recovering from the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 40 level.

Major Support Level – $500

Major Resistance Level – $525

The post Bitcoin Cash Price Analysis: BCH/USD Turned Sell on Rallies appeared first on NewsBTC.

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