Key Points Bitcoin cash price remains in a downtrend and is currently below $1,000 against the US Dollar. There is a major bearish trend line forming with resistance at $1,080 on the 4-hours chart of the BCH/USD pair (data feed from SimpleFX). The pair is under bearish pressure and it may continue to move down towards $850-900 in the near term.
Bitcoin cash price is in a bearish trend below $1,000 against the US Dollar. BCH/USD may find it hard to recover in the near term as long as it is below $1,100.
Bitcoin Cash Price Trend
This past week was mostly bearish since bitcoin cash price declined by more than $250 against the US Dollar. The price declined and traded below a few important support levels such as $1,200, $1,120 and $1,000. It even traded below the $960 support and traded as low as $905. Later, a recovery was initiated from the $905 swing low, but the recovery could not last long.
It traded above the 23.6% Fib retracement level of the last downside move from the $1,281 high to $905 low. However, the upside move was prevented by the $1,060 resistance. Moreover, there was no break above the 38.2% Fib retracement level of the last downside move from the $1,281 high to $905 low. On the upside, there is a major bearish trend line forming with resistance at $1,080 on the 4-hours chart of the BCH/USD pair. Therefore, it seems like there are many hurdles on the upside near the $1,060 and $1,100 levels.
As long as the price is below the $1,100 level, it remains in a downtrend. It may retest the last swing low of $905 and it could even break it for a test of $850.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is mostly moving in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is moving lower towards the 35 level.
Major Support Level – $900
Major Resistance Level – $1,100
Charts courtesy – SimpleFX
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