Bitcoin Cash Price Technical Analysis – BCH/USD Back To Square One

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Key Points

  • Bitcoin cash price declined sharply from $390 and traded towards $300 against the US Dollar.
  • A major bullish trend line with support at $310 prevented declines on the hourly chart of BCH/USD (data feed from Kraken).
  • The price is now back in the bearish zone below the $350 resistance level.

Bitcoin cash price is back below $350 against the US Dollar. BCH/USD might once again test the $310-320 support zone in the near term.

Bitcoin Cash Price Support

After a strong rise towards $400, Bitcoin cash price faced heavy selling pressure against the US Dollar and declined. The price traded lower and broke many supports levels including $350. There was a break and close below the 50% Fib retracement level of the last wave from the $306 low to $400 high. It opened the doors for more losses below $350. The downside move was such that the price even failed to hold the $325 support area.

It traded towards the $300 and formed a low at $306.2. It once again bounced back, but upsides were limited by the 50% Fib retracement level of the last decline from the $400 high to $306 low. The price is struggling to settle above the $350 level and remains at a risk of more losses. On the downside, there is a major bullish trend line with support at $310 forming on the hourly chart of BCH/USD. It prevented declines recently near $306 and might continue to prevent a close below $300.

Bitcoin Cash Price Technical Analysis BCH USD

As long as the price is above $300, it remains supported. On the downside, the main hurdle for buyers is now at $350. In the short term, there can be ranging moves before the price makes an upside attempt above $350.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slightly in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now below the 50 level.

Major Support Level – $310

Major Resistance Level – $350

Charts courtesy – Trading View, Kraken

Source: Newsbtc