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Bitcoin Cash Price Weekly Analysis – BCH/USD to Decline Further

Key Points

  • Bitcoin cash price started a fresh decline this past week and moved below $1,250 against the US Dollar.
  • There is a major bearish trend line forming with resistance at $1,310 on the 4-hours chart of the BCH/USD pair (data feed from SimpleFX).
  • The pair may continue to decline and it could even break the $1,100 support in the near term.

Bitcoin cash price is struggling to recover against the US Dollar. BCH/USD remains at a risk of more declines below the $1,100 level during the next few days.

Bitcoin Cash Price Resistance

There was a fresh downside wave initiated in bitcoin cash price from the $1,610 swing high against the US Dollar. The price declined and moved below the $1,500 and $1,300 support level. The decline was such that the price even broke the $1,250 support level. It is currently trading below the $1,200 level and the 100 simple moving average (4-hours), which is a bearish sign.

The recent low was $1,118 with resistance on the upside around the 23.6% Fib retracement level of the last decline from the $1,617 high to $1,118 low. There is also a major bearish trend line forming with resistance at $1,310 on the 4-hours chart of the BCH/USD pair. The trend line resistance is important since it is near the 38.2% Fib retracement level of the last decline from the $1,617 high to $1,118 low. Moreover, the 100 simple moving average (4-hours) is positioned near the $1,320 level. Therefore, the $1,310-1,320 area is a major hurdle for a recovery in the near term.

Bitcoin Cash Price Weekly Analysis BCH USD

On the downside, the pair remains at a risk of more declines once there is a close below the $1,100 level.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is placed nicely in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.

Major Support Level – $1,100

Major Resistance Level – $1,310

Charts courtesy – SimpleFX

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Bitcoin Price Watch: Is the Recent Drop Part of a Bigger Picture?

At press time, bitcoin is retaining its $6,100 price from yesterday. The currency fell to this position from $6,700 after Japan’s Financial Services Agency (FSA) sent notifications to more than five digital currency exchanges saying that they must heighten their security measures against money laundering after noticing weaknesses in their infrastructures. Bitcoin has continued to suffer drops over the past week. Its initial slump to $6,700 occurred after hovering at the $7,600 mark for some time, and now the price is just $100 away from its February low. While bitcoin did drop below $6,000 during yesterday’s evening hours, things didn’t last, and the coin quickly pushed itself back up to $6,100, where it has been ever since. Bitcoin has allegedly lost over 70 percent of its value since December, when it managed to strike near the $20,000 range. However, many analysts are unconcerned about the currency’s recent behavior, saying it’s all part of a downward trend that was predicted long ago. Digital currency investor Marius Rupsys, for example, has consistently mentioned this idea, stating that while bitcoin pushes steadily lower, the question remains regarding when “big investors will come back.” “Retail traders might be actively buying and selling, but their volumes aren’t sufficient to move the market significantly to either side,” he comments. “’Wait and see’ is for larger investors, who try to get into crypto assets using OTC.” He added: “The volume is going down consistently on all major exchanges (i.e. Bitfinex), so this sell pressure is reducing as less and less people are willing to sell. I am waiting for volume to pick up, which is likely to push the price upwards given sellers sold and new investors want to get in, though it is very difficult to know when that will happen. Therefore, my position is to wait for price action with volume.” Other analysts, however, aren’t so sure, and predict a case of the old gloom-and-doom for bitcoin should the currency fall any lower. Publisher of the newsletter Crypto Patterns Jon Pearlstone, for example, states: “If bitcoin breaks the 2018 lows, watch for a spike in volume and a possible fast drop in price towards the $5,000 level.” Bitcoin is not alone in its demise. The currency is joined by entities like Litecoin – which has struck its lowest point in roughly seven months – and ether, which is currently trading at $479 – about 60 percent lower than its all-time high last December. Overall, the cryptocurrency market has crashed, falling to about $259 billion at press time from $813 billion (almost $1 trillion) last year. Figures like Phillip Nunn – CEO of the Manchester-based financial firm Blackmore Group – are sticking to their guns that bitcoin will reach new heights by the end of the year. Nunn is certain that bitcoin will strike $60,000 by the time 2018 closes, and despite the massive drops, we can’t help but consider bitcoin’s behavior last year, when it rose from $5,000 to nearly $20,000 in just one month between November and December. Could the currency do something extraordinary like that again before things tumble further? Nothing’s impossible, we suppose…. Bitcoin Charts by TradingView

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