Well I see Resistance
Yesterday, we saw a nice upside move in bitcoin cash price above the $800 level against the US Dollar.
The BCH/USD pair traded above the $820 level and the 100 hourly simple moving average. However, the price failed to break the $835-840 resistance area.
There was also a rejection from the 61.8% Fib retracement level of the last decline from the $890 high to $741 low.
So, there was a downside reaction below the $820 support. Sellers gained momentum and there was a break below an ascending channel with support at $800on the hourly chart of the BCH/USD pair. The pair is now trading well below the $800 level and the 100 hourly SMA.
An initial support on the downside is at $770. In the short term, the price may perhaps trade a few points higher towards $800. However, the broken support near $795-800 and the 100 hourly SMA are likely to prevent upsides.
Key Point
Bitcoin cash price traded towards the $840 level where it faced sellers against the US Dollar.
There was a break below an ascending channel with support at $800 on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair is currently under pressure and it seems like it could decline back towards $750.
Bitcoin cash price is back below the $800 support against the US Dollar. BCH/USD is currently at a risk of more declines towards the $750 level.
Looking at the chart, the price is clearly at a risk of more losses as long as it is below $800. A major support on the downside is at $750. Should there be a break below this, the price could revisit the $740 swing low.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 40 level.
Major Support Level – $750
Major Resistance Level – $800
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