Bitcoin Cash Price Technical Analysis – BCH/USD Heading Lower
Bitcoin cash price is once again heading towards $500 against the US Dollar. More losses are likely in BCH/USD if sellers remain in control below $580.Bitcoin Cash Price Decline
Yesterday, we saw how Bitcoin cash price was back to square one after failing to break $620 against the US Dollar. The price remained in the bearish zone during the past three sessions and traded below the $540 support area. Earlier, the $550 support acted as a barrier for sellers, but failed to hold losses. There was a test of the 1.236 extension of the last wave from the $550 low to $627 high.
However, buyers failed to hold the $532 extension level as well. It resulted in a decline below $532. It seems like the price is now heading towards the 1.618 extension of the last wave from the $550 low to $627 high at $503. The $503-500 support area is very important since the last bounce was from $501. There is also a descending channel pattern with current resistance at $580 forming on the hourly chart of BCH/USD.
Therefore, it won’t be easy for buyers to take back control as long as the price is below $580. On the upside, an initial resistance is near $550, followed by the channel resistance at $580.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now approaching the oversold levels.
Major Support Level – $500
Major Resistance Level – $580
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 a DECADE 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, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets. View all posts by Aayush Jindal