Bitcoin Cash Price Analysis: BCH/USD Bears Eyeing $400
- Bitcoin cash price extended losses and broke the $440 swing low against the US Dollar.
- There is a key declining channel in place with resistance at $440 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to extend losses below the $420 and $410 levels in the near term.
Bitcoin cash price declined further below the $440 low against the US Dollar. BCH/USD remains at a risk of more losses towards the $400 handle.
Bitcoin Cash Price Analysis
Yesterday, we saw a major decline from well above $500 in bitcoin cash price against the US Dollar. The BCH/USD pair traded as low as $440 and later started an upside correction. However, the upside correction was limited and the price struggled to move past $460-470. Moreover, there was no proper close above the 23.6% Fib retracement level of the last drop from the $514 high to $440 low.
As a result, there was a fresh downside move and the price broke the $440 low. A new weekly low was formed at $421 and the price is still under a lot of pressure. An initial resistance is near $440 and the 23.6% Fib retracement level of the recent slide from the $514 high to $421 low. Moreover, there is a key declining channel in place with resistance at $440 on the hourly chart of the BCH/USD pair. A break above the channel resistance and $440 may push the price towards the $450 resistance.
Looking at the chart, BCH price is under a lot of pressure below $440 and $450. A break below the $421 low could put bears in control for a test of the $400 handle in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is about to move back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is still well below the 30 level.
Major Support Level – $420
Major Resistance Level – $440