Key Points

  • Bitcoin cash price after trading as high as $1754 started a downside correction against the US Dollar.
  • Yesterday’s highlighted major bullish trend line with support at $1635 was broken on the hourly chart of BCH/USD (data feed from Kraken).
  • The price is now correcting lower and it might soon test the $1450 support area.

Bitcoin cash price has started a downside correction towards $1450 against the US Dollar. BCH/USD might recover once the current correction is over.

Bitcoin Cash Price Resistance

It seems like buyers struggled to push bitcoin cash price above the $1700 level against the US Dollar. The price made a couple of attempts to break the $1718 and $1750 resistance levels, but failed. As a result, a downside correction was initiated. It is now below the 23.6% Fib retracement level of the last leg up from the $1148 low to $1754 high. More importantly, the price is now below the $1640 support and the 100 hourly simple moving average.

During the downside move, yesterday’s highlighted major bullish trend line with support at $1635 was broken on the hourly chart of BCH/USD. The pair will soon test the 38.2% Fib retracement level of the last leg up from the $1148 low to $1754 high. However, there are chances that the pair might even break $1500 for a test of the $1450 support area. The mentioned $1450 support is close to the 50% Fib retracement level of the last leg up from the $1148 low to $1754 high.

Bitcoin Cash Price Technical Analysis BCH USD

Therefore, the current correction might find support near the $1450 level. On the upside, the broken support at $1640-1650 is likely to act as a resistance along with the 100 hourly simple moving average.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is now in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is heading lower towards the 30 level.

Major Support Level – $1450

Major Resistance Level – $1640

 

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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