Bitcoin Cash Price Analysis: BCH/USD is Facing Uphill Task
- Bitcoin cash price declined further and tested the $500 support against the US Dollar.
- There is a crucial bearish trend line in place with resistance at $530 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to face a strong selling interest near the $530 and $535 levels in the near term.
Bitcoin cash price found support near $500 against the US Dollar. BCH/USD is correcting higher, but it could face sellers near the $530-535 zone.
Bitcoin Cash Price Analysis
Yesterday, we saw a fresh downside move below $550 in bitcoin cash price against the US Dollar. The BCH/USD pair declined below the $540 and $525 support levels. The drop was such that the price tested the $500 support area. Later, buyers appeared and protected further losses below $500. A low was formed at $502 and the price started an upside correction.
It has moved above the 23.6% Fib retracement level of the recent decline from the $549 high to $502 low. However, there are many hurdles on the upside near the $530 level. More importantly, there is a crucial bearish trend line in place with resistance at $530 on the hourly chart of the BCH/USD pair. Additionally, the 61.8% Fib retracement level of the recent decline from the $549 high to $502 low is also at $531. Finally, the 100 hourly simple moving average is positioned near $530. Therefore, it won’t be easy for BCH buyers to clear the $530 and $535 resistance levels.
Looking at the chart, BCH price may continue to move higher, but upsides are likely to be capped by $535. Above this, the price will most likely test the $550 resistance zone in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is gaining in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now back above the 50 level.
Major Support Level – $500
Major Resistance Level – $535