Key Points
- Bitcoin cash price faced heavy selling pressure and it declined toward $1500 against the US Dollar.
- Yesterday’s highlighted major bearish trend line with resistance at $2100 is intact on the hourly chart of BCH/USD (data feed from Kraken).
- The pair may correct a few points, but it is likely to face resistances near $2000 and $2100.
Bitcoin cash price declined sharply toward $1500 against the US Dollar. BCH/USD is now in a bearish trend as long as it is below $2100.
Bitcoin Cash Price Downtrend
There was a start of a fresh downside wave in bitcoin cash price from the $2600 swing high against the US Dollar. The price crashed and declined below a few important support levels such as $2200 and $2100. The decline was such that the price even declined below the $1600 support. It traded close to the $1500 level and formed a low at $1501.7. Later, an upside correction was initiated and the price moved above the 23.6% Fib retracement level of the last drop from the $2403 high to $1501 low.
However, there are many resistances on the upside around the $2000 level. Above $2000, yesterday’s highlighted major bearish trend line with resistance at $2100 is intact on the hourly chart of BCH/USD. Moreover, the 50% Fib retracement level of the last drop from the $2403 high to $1501 low is at $1952 to prevent upsides. Therefore, it seems like there are many barriers for buyers around the $1950 and $2100 levels. As long as the price is below the $2100 level, it remains in a downtrend.
On the downside, an initial support is around $1600, followed by the last swing low of $1501. A break below $1501 could increase a lot of pressure for a move toward $1200.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.
Major Support Level – $1500
Major Resistance Level – $2100
Charts courtesy – Trading View, Kraken
