05 Feb Bitcoin Cash Price Technical Analysis – BCH/USD is Back to Square One
- Bitcoin cash price failed to move above the $1,300 level and started a downside move against the US Dollar.
- There is a crucial bearish trend line forming with resistance at $1,220 on the hourly chart of BCH/USD (data feed from SimpleFX).
- The pair is currently heading towards the $1,050 support area and it remains at a risk of more declines.
Bitcoin cash price faced a lot of sellers against the US Dollar. BCH/USD is back in a bearish zone and it could soon retest the $1,000 level.
Bitcoin Cash Price Resistance
There was a decent recovery in bitcoin cash price above the $1,200 level against the US Dollar. However, the price struggled to move above the $1,300 level and started a downside move. It seems like the price completed a correction near $1,300 and it is back in a bearish trend. It already broke the 50% Fib retracement level of the wave from the $980 low to $1,301 high.
The upside move was capped by a crucial bearish trend line with resistance at $1,220 on the hourly chart of BCH/USD. The pair is currently trading below the $1,100 level and is heading towards the $1,050 support area. It may soon test the 76.4% Fib retracement level of the wave from the $980 low to $1,301 high. A break below the $1,080 and $1,060 levels could push the price back towards the $1,000 level. The mentioned $1,000 level and the $980 support levels are important.
BCH price has to stay above the $1,000 level to avoid further declines. On the upside, an initial resistance is around the $1,150 level. Above $1,150, the trend line resistance could prevent gains near $1,220.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently heading lower towards the 30 level.
Major Support Level – $1,000
Major Resistance Level – $1,150
Charts courtesy – SimpleFX
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