Bitcoin Cash Price Technical Analysis – BCH/USD To Correct Lower

Key Points

  • Bitcoin cash price failed to hold an important support area at $440 against the US Dollar.
  • This week’s highlighted bullish trend line with support at $440 was broken on the hourly chart of BCH/USD (data feed from Kraken).
  • The price is currently below a bearish trend line with current resistance at $445.

Bitcoin cash price is correcting lower against the US Dollar. BCH/USD might retest $420-410 before it bounces back above $445-450.

Bitcoin Cash Price Correction

Yesterday, we saw how there was a tiny correction initiated in Bitcoin cash price towards $450 against the US Dollar. We also saw a bullish trend line with support at $440 on the hourly chart of BCH/USD. However, the pair failed to hold the highlighted trend line support at $440 and declined towards $420. The downside move was limited, but we cannot discard the fact that there was a break of the trend line support at $440.

At present, the pair is recovering, but facing resistance near the 23.6% Fib retracement level of the last decline from the $520 high to $417 low. Moreover, there is a key bearish trend line forming with current resistance at $445. A break above the $445-450 resistance is required for BCH to overcome any increase in bearish sentiment. Should there be a break above $450, the price might test the 50% Fib retracement level of the last decline from the $520 high to $417 low.

On the downside, the $420 support remains a major buy zone. As long as the pair is above $420-400, it remains supported despite the current correction and resistance at $450.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is not showing any major bearish signs at the moment.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just around 50 and heading north with positive signs.

Major Support Level – $420

Major Resistance Level – $450

 

Charts courtesy – Trading View, Kraken

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.


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