Key Points
- Bitcoin cash price traded sharply lower and moved below the $2000 support against the US Dollar.
- There is a major bearish trend line forming with current resistance at $3000 on the 4-hours chart of BCH/USD (data feed from Kraken).
- The pair might continue to struggle to move above the $3000 level in the near term.
Bitcoin cash price is under pressure and is below $3000 against the US Dollar. BCH/USD may continue to face sellers on upside near $3000 and $3200.
Bitcoin Cash Price Resistance
After a solid upside move above the $3500 level, bitcoin cash price found sellers against the US Dollar. The price traded sharply lower and moved below the $3000 and $2000 support levels. The decline was crucial and the price traded as low as $1772. Later, an upside move was initiated and the price moved above the 23.6% Fib retracement level of the last decline from the $4000 high to $1772 low. However, the price is facing a lot of sellers around the $3000 level.
There is also a major bearish trend line forming with current resistance at $3000 on the 4-hours chart of BCH/USD. The pair is struggling to move above the $3000 level and it might continue to struggle. Moreover, the 61.8% Fib retracement level of the last decline from the $4000 high to $1772 low also acted as a hurdle. Once there is a break above the trend line resistance and the trend line at $3000, the price might recover further in the near term.
However, any major gains would be tough above $3000 and $3200. On the downside, the $2400 level is also a good support followed by the $2000 level.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is about to move back in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now moving lower from the 50 level.
Major Support Level – $2000
Major Resistance Level – $3000
Charts courtesy – Trading View, Kraken
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