Bitcoin Cash Price Weekly Analysis BCH/USD to Decline Further
Bitcoin cash price is struggling to recover against the US Dollar. BCH/USD remains at a risk of more declines below the $1,100 level during the next few days.Bitcoin Cash Price Resistance
There was a fresh downside wave initiated in bitcoin cash price from the $1,610 swing high against the US Dollar. The price declined and moved below the $1,500 and $1,300 support level. The decline was such that the price even broke the $1,250 support level. It is currently trading below the $1,200 level and the 100 simple moving average (4-hours), which is a bearish sign.
The recent low was $1,118 with resistance on the upside around the 23.6% Fib retracement level of the last decline from the $1,617 high to $1,118 low. There is also a major bearish trend line forming with resistance at $1,310 on the 4-hours chart of the BCH/USD pair. The trend line resistance is important since it is near the 38.2% Fib retracement level of the last decline from the $1,617 high to $1,118 low. Moreover, the 100 simple moving average (4-hours) is positioned near the $1,320 level. Therefore, the $1,310-1,320 area is a major hurdle for a recovery in the near term.
On the downside, the pair remains at a risk of more declines once there is a close below the $1,100 level.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is placed nicely in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
Major Support Level – $1,100
Major Resistance Level – $1,310