Bitcoin Cash Price Technical Analysis – BCH/USD Correction Limited

Key Points

• Bitcoin cash price after a ride started a downside move and traded towards $240 against the US Dollar.
• There was a break above a bearish trend line at $260 recently on the hourly chart of BCH/USD (data feed from Kraken).
• The price may correct further towards $340-360, but upsides remain limited.

Bitcoin cash price declined heavily recently against the US Dollar. BCH/USD is currently correcting higher, but upsides face resistance near $340-360.

Bitcoin Cash Price Decline

This past week, we saw a solid ride in Bitcoin cash price towards $800 vs the US Dollar before it started declining. The price faced a lot of selling pressure and declined below the $400 level to trade towards $250. The price traded as low as $240 recently where it found support and started an upside move. The price is currently recovering, but upsides remain capped by the $340-360 levels.

During the recent upside, there was a break above a bearish trend line at $260 recently on the hourly chart of BCH/USD. It has opened the doors for more gains and the price is now above the $280 level. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $560 high to $241 low. Above $320, the 100 hourly simple moving average is waiting to act as a hurdle near $340.

Moreover, the 38.2% Fib retracement level of the last decline from the $560 high to $241 low is at $372. So, the $340-370 zone is a major barrier for buyers. It won’t be easy for BCH to move back above the $400 level before a consolidation.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is attempting to move from the bearish to bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently heading higher and placed above the 50 level.

Major Support Level – $240

Major Resistance Level – $340

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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