Bitcoin cash price failed to clear the $650 resistance and dropped sharply against the US Dollar.There is a key bearish trend line forming with resistance at $525 on the hourly chart of the BCH/USD pair (data feed from Kraken).The pair is down more than $100 from highs and it turned sell on rallies near $525 and $550.
Bitcoin cash price dropped significantly below $550 against the US Dollar. BCH/USD is recovering, but it could face a lot of sellers near $525 and $550.
Bitcoin Cash Price Decline
Yesterday, we discussed an important resistance near $645 and $650 in Bitcoin cash price against the US Dollar. The BCH/USD pair started a sharp downside move and declined more than $100 below $550. There was even a break below the $500 level and the price settled below the 100 hourly simple moving average. A low was formed near $485 and the price is currently correcting higher.
On the upside, an initial resistance is near the 23.6% Fib retracement level of the last decline from the $648 high to $485 low. There is also a key bearish trend line forming with resistance at $525 on the hourly chart of the BCH/USD pair. If the price breaks the trend line, it could trade towards the $550 resistance area. Above this, the next hurdle for buyers is near $565. It represents the 50% Fib retracement level of the last decline from the $648 high to $485 low. On the other hand, if the price fails to move above $525 and $550, it could drop again below $500.
Looking at the chart, BCH price is under a lot of pressure and any recoveries are likely to be capped near $525, $530 or $550.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly recovering from the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 40 level.
Major Support Level – $500
Major Resistance Level – $525