- Bitcoin cash price declined sharply and broke the $ 434-435 support area against the US Dollar.
- There is a major bearish trend line in place with resistance at $ 435 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair was rejected near the trend line, igniting a sharp decline towards $ 400.
Bitcoin cash price turned south and broke the $ 430 and $ 420 support against the US Dollar. BCH/USD could recover but it is likely to face sellers near $ 420-425.
Bitcoin Cash Price Analysis
After consolidating for many days above the $ 430 level, bitcoin cash price reacted to the downside against the US Dollar. The BCH/USD pair failed to break the $ 440 and $ 450 resistance levels and declined sharply. It broke the $ 432, $ 430 and $ 420 support levels to move into a bearish zone. There was even a close below the $ 420 level and the 100 hourly simple moving average.
It seems like the BCH/USD pair was rejected near a major bearish trend line with current resistance at $ 435 on the hourly chart. The pair traded close to the $ 400 handle and formed a low at $ 408. It is currently consolidating just below the 23.6% Fib retracement level of the last decline from the $ 438 high to $ 408 low. The price may perhaps correct a few points above the $ 415 level. However, gains could be limited and levels such as $ 420 and $ 425 are likely to prevent gains. Moreover, the 50% Fib retracement level of the last decline from the $ 438 high to $ 408 low awaits near $ 423.
Looking at the chart, BCH price has moved into a bearish zone below the $ 425 level. If there is any recovery in the short term, buyers are likely to struggle near $ 420 or $ 425.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is recovering above the 30 level.
Major Support Level – $ 408
Major Resistance Level – $ 425