Bitcoin Cash Price Technical Analysis – BCH/USD Continues To Decline

Key Points

• Bitcoin cash price failed to move above the $620 level against the US Dollar and extended decline.
• Yesterday’s highlighted a descending channel pattern with resistance near $620 on the hourly chart of BCH/USD (data feed from Kraken) is still in place.
• The price might continue to decline and could even test the last swing low of $550.

Bitcoin cash price was not able to recover above $620-640 against the US Dollar. BCH/USD is likely to extend declines below $600 in the near term.

Bitcoin Cash Price Decline

There is a slow and steady decline underway below $700 in Bitcoin cash price against the US Dollar. The price recently attempted a correction, but failed to break the $640 resistance and the 100 hourly simple moving average. There is a declining phase initiated and the price could even test the last swing low of $550. It has already breached the 76.4% Fib retracement level of the last wave from the $585 low to $660 high.

Therefore, there are chances of it declining further towards $580 or even towards $550. At the moment, it is trading near the 76.4% Fib retracement level of the last wave from the $540 low to $745 high. Once it breaks $580, it would open the doors for a test of $550-540. Moreover, yesterdays highlighted a descending channel pattern forming with resistance near $620 on the hourly chart of BCH/USD is acting as a strong resistance.

The channel resistance is a huge barrier at $620 along with the 100 hourly simple moving average. Selling rallies close to $620 can be considered in the near term with a stop on a close above the 100 hourly SMA.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is not moving much, but remains in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is well below the 50 level.

Major Support Level – $580

Major Resistance Level – $620

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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