Bitcoin Cash Price Technical Analysis: Breakdown Has Extended

By | October 2, 2017

Bitcoin Cash Price Technical Analysis: Breakdown Has Extended

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Bitcoin cash’s recovery attempt has failed against the US Dollar. BCH/USD needs to break $428 to gain upside momentum in the short term.

The Status:

  • Bitcoin cash price is forming a base near the $410 support area against the US Dollar.
  • There is a key bearish trend line forming with resistance near $428 on the hourly chart of BCH/USD (data feed from Kraken).
  • The price has to break the $428 resistance to correct towards $435-440 in the near term.

 

Technical Aspect

Recently, we saw a downside move in Bitcoin cash price towards the $400 handle against the US Dollar. The price traded as low as $410.8 where it found buyers and is currently attempting a recovery in the short term. However, an upside move won’t be easy since it is facing many hurdles like $425 and $440. To start with, there is a key bearish trend line forming with resistance near $425 on the hourly chart of BCH/USD.

The trend line resistance near $425 is very important. It is also near the 23.6% Fib retracement level of the last decline from the $453 high to $410 low. A break above the $425 resistance would encourage buyers to push the price towards $435. The mentioned $435 resistance is the next barrier. It is the 50% Fib retracement level of the last decline from the $453 high to $410 low. Once there is a break above the $435-440 resistance, there is a chance of further gains in the near term.

On the downside, the $310 low is a major support area. Should there be a close below $410, the price would easily test the $400 handle.

Technical indicators:

Hourly MACD – The MACD for BCH/USD is heavily in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is below 50 level by big margin.

Major Support Level – $410

Major Resistance Level – $428

 

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. Altcoin Today does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

 

 

Source: NewsBTC

Charts courtesy of Trading View

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Published at Mon, 02 Oct 2017 05:20:16 -0400