- Bitcoin cash price traded to a new low at $410 before starting a recovery against the US Dollar.
- This week’s highlighted important bearish trend line could stop upsides near $450 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is recovering, but it is about to face major hurdles near the $440 and $450 resistance levels.
Bitcoin cash price traded towards the $400 support against the US Dollar. BCH/USD is currently correcting higher, but it could face resistance near $450.
Bitcoin Cash Price Upside Hurdle
There were more declines noted below the $425 low in bitcoin cash price against the US Dollar. The BCH/USD pair broke the $425 and $420 support levels and traded to a new monthly low at $410. Later, buyers appeared and the price recovered above the $425 level. There was also a break above the 23.6% Fib retracement level of the last drop from the $475 swing high to $410 low.
However, the price is now approaching a couple of important hurdles near the $450 level. An immediate resistance is near the $444 level. It represents the 50% Fib retracement level of the last drop from the $475 swing high to $410 low. Moreover, this week’s highlighted important bearish trend line could stop upsides near $450 on the hourly chart of the BCH/USD pair. If there is a break above the trend line, the next resistance is near $460 and the 100 hourly simple moving average. Therefore, the $450 and $460 resistance levels are likely to stop the current recovery.
Looking at the chart, BCH price is currently in a correction phase, which could complete anywhere near $450. Sellers are likely to come back to push the price back towards $410.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has moved back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level.
Major Support Level – $425
Major Resistance Level – $450
Author: Aayush Jindal