Bitcoin cash price failed to gain momentum above the $540 level and declined against the US Dollar.There is a major bearish trend line formed with resistance near $535 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).The pair must stay above the $500 and $510 support levels to avoid a downside break in the near term.
Bitcoin cash price is showing a few bearish signs below $540 against the US Dollar. BCH/USD could make the next break either above $540 or below $500.
Bitcoin Cash Price Resistance
There was a strong buying interest emerged above the $500 level in Bitcoin cash price against the US Dollar. The BCH/USD pair slowly moved higher and traded above the $520 resistance. There was also a break above the 23.6% Fib retracement level of the last decline from the $573 high to $509 low. However, there was a strong resistance near the $540 and $545 zone along with the 100 simple moving average (4-hours).
The price failed to gain momentum and struggled near the 50% Fib retracement level of the last decline from the $573 high to $509 low. More importantly, there is a major bearish trend line formed with resistance near $535 on the 4-hours chart of the BCH/USD pair. The same trend line is positioned with the 100 SMA at $545. Therefore, the price has to break the $540 and $545 resistance levels to accelerate towards the $570 and $580 levels. On the flip side, the $510 level is an initial support. Below this, the next major support is near $500.
Looking at the chart, BCH price seems to be preparing for the next move either above $540 or below the $500 level in the near term.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is slightly placed in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD has moved below the 50 level.
Major Support Level – $500
Major Resistance Level – $540