- Bitcoin cash price fell significantly and broke the $600 support against the US Dollar.
- There is a new contracting triangle forming with resistance near $608 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to resume its downside move once the current correction is complete near $600-610.
Bitcoin cash price settled below $600 against the US Dollar. BCH/USD is currently correcting higher, but it could face sellers near the $600-610 zone.
Bitcoin Cash Price Resistance
There was no stopping sellers as bitcoin cash price declined below the $620 and $600 supports against the US Dollar. The BCH/USD pair even broke the $580 support and traded to a new weekly low at $565. Later, the price started an upside correction and traded above the $580 level. However, it seems like the current upside move could face a lot of selling interest near the $600 and $610 level.
An initial resistance is near the 23.6% Fib retracement level of the recent decline from the $712 high to $565 low. More importantly, there is a new contracting triangle forming with resistance near $608 on the hourly chart of the BCH/USD pair. The pair seems to be forming a bearish pennant with resistance near the $610 zone. If the price breaks down, it could resume its downside move below the $570 level. The next major support below the recent low of $565 is at $550. On the other hand, if the price surpasses the $610 level, it may well test the $621 level. It represents the 38.2% Fib retracement level of the recent decline from the $712 high to $565 low.
Looking at the chart, BCH price is slowly recovering, but it won’t be easy for buyers to push the price above $610 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is moving higher towards the 44 level.
Major Support Level – $570
Major Resistance Level – $610
Author: Aayush Jindal