Bitcoin Cash Price Technical Analysis – BCH/USD Under Pressure

Key Points

• Bitcoin cash price corrected higher but failed to break the $650 resistance against the US Dollar.
• There is a new descending channel pattern forming with resistance near $630 on the hourly chart of BCH/USD (data feed from Kraken).
• The price has to break above $630 resistance and the 100 hourly simple moving average to gain pace.

Bitcoin cash price is struggling to gain pace above $650 against the US Dollar. BCH/USD remains in a downtrend and at risk of more losses.

Bitcoin Cash Price Resistance

There was a decline in Bitcoin cash price towards the $580 level against the US Dollar. The price found support near $580 and started a short-term correction. It moved above the $600 level and attempted an upside break. However, the upside break was prevented by the $650 resistance and the 100 hourly simple moving average. The price failed to move and settle above $650 and is currently trading lower.

There is a new descending channel pattern forming with resistance near $630 on the hourly chart of BCH/USD. The channel resistance at $630 is just below the 100 hourly simple moving average. Therefore, it holds a lot of importance, and a close above $630-650 won’t be easy. The price already corrected lower once and tested the 61.8% Fib retracement level of the last wave from the $580 low to $659 high. On the downside, an initial support is near $580, followed by the channel support at $550.

It would be interesting to see how the price trades and whether it can break $650 or not. A proper close above $650 and 100 hourly simple moving average is needed for buyers to gain momentum.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is close to flat in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is just above 50 level.

Major Support Level – $580

Major Resistance Level – $650

Charts courtesy – Trading View, Kraken

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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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