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

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.

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

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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