- Bitcoin cash price failed to recover above $550 and declined recently against the US Dollar.
- There is a crucial bearish trend line formed with resistance at $535 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to remain in a bearish zone and it could slide towards the $500 support.
Bitcoin cash price is under pressure below $550 against the US Dollar. BCH/USD could accelerate losses towards the $500 and $480 support levels.
Bitcoin Cash Price Analysis
There was a slow and steady decline initiated from well above $600 in bitcoin cash price against the US Dollar. The BCH/USD pair broke the $580 and $550 support levels to move into a bearish zone. The decline was such that there was a close below the $550 support and the 100 hourly simple moving average. The price recently traded below the $521 low and formed a new low at $510.
Later, there was a minor upside correction above $520. The price traded above the 23.6% Fib retracement level of the recent decline from the $561 high to $510 low. However, the price struggled to move above the $525-530 resistance. There is also a crucial bearish trend line formed with resistance at $535 on the hourly chart of the BCH/USD pair. Above the trend line, the 50% Fib retracement level of the recent decline from the $561 high to $510 low is a major hurdle near the $536 level. Therefore, a proper close above the $535 and $540 levels is required for a decent recovery.
Looking at the chart, BCH price is clearly at a risk of more slides towards the $500 support as long as it is below $540 and $550.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is mostly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level with a bearish angle.
Major Support Level – $500
Major Resistance Level – $540
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Author: Aayush Jindal