Monday, April 22, 2024
More

    Bitcoin Cash Price Technical Analysis – BCH/USD to Retest $2300

    Latest Posts

    Key Points

    • Bitcoin cash price failed to stay above the $2500 and $2600 support levels against the US Dollar.
    • There was a break below a key bullish trend line with support at $2520 on the hourly chart of BCH/USD (data feed from Kraken).
    • The pair might extend its decline and it could even trade towards the $2300 support area.

    Bitcoin cash price struggled and moved below $2500 against the US Dollar. BCH/USD could trade further lower and test the $2300 support.

    Bitcoin Cash Price Decline

    There was a pause in the bounce near $2700 in bitcoin cash price against the US Dollar. The price failed to stay above the $2700 level and started a downside move. It declined and broke the $2600 and $2500 support levels. During the decline, there was a break below a key bullish trend line with support at $2520 on the hourly chart of BCH/USD.

    The pair is currently trading around $2450 and is attempting a close below the 100 hourly simple moving average. Should there be a close below $2450 and the 100 hourly SMA, the price could extend declines. The next major support on the downside is around $2300 followed by $2280. On the upside, an initial resistance is around the 23.6% Fib retracement level of the last drop from the $2730 high to $2417 low. However, the most important hurdle is close to the $2550 level and the broken trend line.

    If there is a short-term correction, the $2550 and $2600 levels are likely to prevent gains. The 50% Fib retracement level of the last drop from the $2730 high to $2417 low is near $2570 to act as a major barrier. Therefore, there can be more slides towards the $2300 support.

    Looking at the technical indicators:

    Hourly MACD – The MACD for BCH/USD is currently in the bearish zone.

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

    Major Support Level – $2300

    Major Resistance Level – $2550

     

    Charts courtesy – Trading View, Kraken

    Latest Posts

    Don't Miss