- Bitcoin cash price is under a lot of pressure after it broke the $ 150 support against the US Dollar.
- There is a major declining channel formed with resistance near $ 135 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is currently trading near $ 125 and it may slide further towards the $ 100 level in the near term.
Bitcoin cash price registered heavy losses from the $ 200 swing high against the US Dollar. BCH/USD could continue to move down towards the $ 100 level.
Bitcoin Cash Price Analysis
Yesterday, we discussed that bitcoin cash price may slide further towards $ 125 against the US Dollar. The BCH/USD pair did trade lower after it broke the $ 150 and $ 145 support levels. The decline was such that the price even broke the $ 130 level and traded close to $ 125. It is now positioned well below the $ 140 level and the 100 hourly simple moving average.
The recent low was formed near $ 126 and the current price action suggests more gains. On the upside, an initial resistance is near the 23.6% Fib retracement level of the last decline from the $ 158 swing high to $ 126 low. More importantly, there is a major declining channel formed with resistance near $ 135 on the hourly chart of the BCH/USD pair. The pair is very unlikely to trade above the $ 135 and $ 140 resistance levels in the short term. Above $ 140, the next resistance is the 50% Fib retracement level of the last decline from the $ 158 swing high to $ 126 low. On the downside, a close below the $ 125 level could push the price towards $ 110 or $ 100.
Looking at the chart, BCH price is clearly in a significant downtrend below $ 150. It is likely to slide further towards $ 120, $ 110 or $ 100.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well below the 30 level.
Major Support Level – $ 120
Major Resistance Level – $ 135