Bitcoin Cash Price Technical Analysis – BCH/USD Struggle Continues

Key Points

• Bitcoin cash price continued to move down and currently trading below the $320 level against the US Dollar.
• There is a crucial descending channel pattern with resistance at $315 forming on the hourly chart of BCH/USD (data feed from Kraken).
• The price may extend its decline and might soon test the $275 support in the short term.

Bitcoin cash price is struggling to move higher against the US Dollar. BCH/USD is likely to remain under bearish pressure and could even trade towards $275.

Bitcoin Cash Price Support

In yesterday’s analysis, we saw a declining pattern below $320 in Bitcoin cash price against the US Dollar. The price remained under pressure and declined towards $290. The most important point is the fact that the 100 hourly simple moving average and the $320 resistance are acting as strong barriers. Moreover, yesterday’s highlighted crucial descending channel pattern with resistance at $315 on the hourly chart of BCH/USD is still intact.

The price is currently struggling to trade above the 38.2% Fib retracement level of the last decline from the $330.00 high to $293.03 low. On the upside, the channel resistance near $315 may be considered as a sell zone in the near term. It also coincides with the 100 hourly simple moving average at $310. Moreover, the 50% Fib retracement level of the last decline from the $330.00 high to $293.03 low is at $311.

Therefore, the $310-315 area is a crucial resistance for buyers in the near term. As long as the price is below $315, it may continue to move down. The next major support on the downside sits at $375, which can hold losses.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is struggling to move into the bullish zone.

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

Major Support Level – $275

Major Resistance Level – $315

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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