Bitcoin Cash price against the US Dollar became bearish as it broke the major supports at US$430 and US$420. At the time of publication, the BCH/USD price was hovering around $420.42.
The 24-hour chart shows that until yesterday evening the price was hovering above the major support area at US$434-435. However, at around 1130 hours GMT yesterday, the crucial support was broken as BCH/USD was rejected near the trend line. After that, the market went downhill fast. Within one and a half hours of trading time, the Bitcoin Cash price with respect to the US Dollar nosedived to $415.74. BCH/USD pair is showing signs of recovery and is consolidating around US$420. Analysts believe the Bitcoin Cash price could again face sellers near the $US420-425 region.
Technical Analysis of this Sharp Fall in Bitcoin Cash Price
Bitcoin Cash price (BCH/USD) consolidated above US$430-level for many days. The pair tried to break above the strong resistance levels at US$440 and $450, it could not. Once it failed, the strong bearish pull dragged BCH/USD pair and broke the crucial support levels at US$432, US$430, and US$420 to enter the bearish zone. The bearish sentiment was so strong the price even closed below the crucial support at $420 as well as the 100-hourly simple moving average.
Technical analysts believe the BCH price against the US Dollar was got rejected near a major bearish trend line, which rolled the ball downhill. Charts show that the price is consolidating currently just below the 23.6% Fibonacci retracement level of the last decline from the high at US$438 to low at US$408. Price correction above US$415 is expected, evident from the current price that is hovering around $420. However, the technical chart shows there are slim chances of too much increase and will likely get strong resistance at $420 and $425 levels. While trading in this choppy market condition, it’s important for you to take into account the 50% Fibonacci retracement level of the last decline from the high at $438 to low at $408 low. The concerned level is awaiting at US$423. You should also remember the major support and resistance levels at US$408 and US$425 respectively.
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