Bitcoin Cash Price Technical Analysis – BCH/USD Declining Channel

Key Points

• Bitcoin cash price extended its correction and even traded below the $700 level against the US Dollar.
• There is a crucial descending channel pattern with resistance near $620 forming on the hourly chart of BCH/USD (data feed from Kraken).
• The price might continue to decline in the short term and could even retest $540.

Bitcoin cash price started a sharp downside correction below $700 against the US Dollar. BCH/USD remains under pressure and might test $540.

Bitcoin Cash Price Resistance

Yesterday, we saw how Bitcoin cash price started a downside correction from $940 against the US Dollar. The price moved down and traded below the $800 and $750 support levels. However, the mentioned correction was extended as the price traded below $700. It seems like the price is following a declining path and might continue to trade lower towards $500. It already broke the 50% Fib retracement level of the last wave from the $295 low to $943 high.

It is a bearish sign and suggests more losses as long as the price is below $700. At the moment, the price is also below the $650 level and the 100 hourly simple moving average. There is a crucial descending channel pattern with resistance near $620 forming on the hourly chart of BCH/USD. The channel resistance near $620 is also near the 100 hourly simple moving average. Therefore, the $620-640 resistance zone is likely to act as a major hurdle for buyers.

On the downside, an initial support is near the 61.8% Fib retracement level of the last wave from the $295 low to $943 high at $542. Selling rallies in the short term towards $640 might be considered with a stop above the 100 hourly SMA.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is mostly showing bearish signs.

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

Major Support Level – $540

Major Resistance Level – $640

 

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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