Key Points

• Bitcoin cash price traded sharply lower and moved below the $2000 support against the US Dollar.
• There is a major bearish trend line forming with current resistance at $3000 on the 4-hours chart of BCH/USD (data feed from Kraken).
• The pair might continue to struggle to move above the $3000 level in the near term.

Bitcoin cash price is under pressure and is below $3000 against the US Dollar. BCH/USD may continue to face sellers on upside near $3000 and $3200.

Bitcoin Cash Price Resistance

After a solid upside move above the $3500 level, bitcoin cash price found sellers against the US Dollar. The price traded sharply lower and moved below the $3000 and $2000 support levels. The decline was crucial and the price traded as low as $1772. Later, an upside move was initiated and the price moved above the 23.6% Fib retracement level of the last decline from the $4000 high to $1772 low. However, the price is facing a lot of sellers around the $3000 level.

There is also a major bearish trend line forming with current resistance at $3000 on the 4-hours chart of BCH/USD. The pair is struggling to move above the $3000 level and it might continue to struggle. Moreover, the 61.8% Fib retracement level of the last decline from the $4000 high to $1772 low also acted as a hurdle. Once there is a break above the trend line resistance and the trend line at $3000, the price might recover further in the near term.

However, any major gains would be tough above $3000 and $3200. On the downside, the $2400 level is also a good support followed by the $2000 level.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is about to move back in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now moving lower from the 50 level.

Major Support Level – $2000

Major Resistance Level – $3000

 

Charts courtesy – Trading View, Kraken

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