01 Feb Bitcoin Cash Price Technical Analysis – BCH/USD Consolidating Losses
- Bitcoin cash price started a minor upside correction after trading as low as $1,390 against the US Dollar.
- Yesterday’s highlighted a new bearish trend line with current resistance at $1,520 is active on the hourly chart of BCH/USD (data feed from SimpleFX).
- The pair is currently trading in a range above the $1,450 level, but is facing hurdles near $1,520-1,540.
Bitcoin cash price fell sharply recently against the US Dollar. BCH/USD is currently recovering and is consolidating above the $1,420-1,450 levels.
Bitcoin Cash Price Resistance
Yesterday, we saw how there was a sharp decline in bitcoin cash price to well below 1,500 against the US Dollar. The price even traded a few points below the $1,400 level. It formed a low at $1,390 and is currently correcting higher. It has moved above the 23.6% Fib retracement level of the last major drop from the $1,638 high to $1,390 low. However, BCH buyers are facing a lot many hurdles on the upside near $1,520 and $1,540.
More importantly, yesterdays highlighted a new bearish trend line with current resistance at $1,520 is active on the hourly chart of BCH/USD. The pair is currently trading nicely above the $1,450 level and is consolidating losses. It almost tested the 50% Fib retracement level of the last major drop from the $1,638 high to $1,390 low. However, it seems like the trend line resistance and $1,540 are important barriers for buyers on the upside.
A proper close above $1,540 could initiate a fresh upside move in BCH/USD. On the downside, an initial support is near the $1,450 level. The most important and a buy zone on the downside sits near the $1,400 level. Any further declines below $1,400 could be limited.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has reduced most of its bearish slope.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is slowly moving higher and is currently around the 50 level.
Major Support Level – $1,450
Major Resistance Level – $1,520
Charts courtesy – SimpleFX
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