Bitcoin cash price is back to square one against the US Dollar. BCH/USD has to stay above $550 to avoid further declines in the near term.Bitcoin Cash Price Resistance
Yesterday, we saw how there was a decent support base formed near $550 in Bitcoin cash price against the US Dollar. Later, the price started a recovery from the $550 low and managed to crawl above the 23.6% Fib retracement level of the last fall from the $720 high to $550 low. It was an initial positive signs and helped buyers in taking the price above the $600 level.
There was a huge spike in the price towards $620 where it faced sellers. A crucial bearish trend line with resistance at $610 on the hourly chart of BCH/USD protected gains. Moreover, the 38.2% Fib retracement level of the last fall from the $720 high to $550 low also acted as a resistance. The pair failed to break $620, faced heavy offers and moved down. As a result, there was a false spike formed and the price is currently bank trading near $550. The mentioned $550 support is a major horizontal pivot.
The price has to remain above the stated level or there are chances of further losses towards $520. If sellers remain in action, the price could even test $500.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is almost flat with no real momentum.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is heading lower towards 40 level.
Major Support Level – $550
Major Resistance Level – $610
Charts courtesy – Trading View, KrakenDisclaimer: 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.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets. View all posts by Aayush Jindal