Bitcoin Cash Price Analysis: BCH/USD Back in Bearish Zone

Key Points

  • Bitcoin cash price failed to hold gains and declined below the $825 support against the US Dollar.
  • Yesterday’s highlighted important bullish trend line was breached with support at $840 on the hourly chart of the BCH/USD pair (data feed from Kraken).
  • The pair is now back in a bearish zone with an immediate support near the $780 level.

Bitcoin cash price faced an increased selling pressure against the US Dollar. BCH/USD dropped below the $825 support to move into a bearish zone.

Bitcoin Cash Price Decline

There were a couple of failures noted above the $870 level in bitcoin cash price against the US Dollar. The BCH/USD pair started a downside move and broke the $850 and $840 support levels. There was even a break below the 50% Fib retracement level of the last leg from the $770 swing low to $878 high. Moreover, the price broke a key support at $825 and settled below the 100 hourly simple moving average.

During the decline, yesterday’s highlighted important bullish trend line was breached with support at $840 on the hourly chart of the BCH/USD pair. The pair is currently trading below the $800 level and is testing the 76.4% Fib retracement level of the last leg from the $770 swing low to $878 high. It seems like the price moved back in a bearish zone and it could accelerate declines towards the $780 support area. Below this, the price may perhaps test the $750 support zone.

Bitcoin Cash Price Analysis BCH USD

Looking at the chart, the price is clearly under pressure below $825. If there is an upside move, the broken support at $825 and the 100 hourly SMA is likely to act as resistances. Above this, there is a bearish trend line with resistance near $840 on the same chart.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 40 level.

Major Support Level – $780

Major Resistance Level – $825

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by Aayush Jindal on July 27, 2018 at 09:38AM