Bitcoin Cash has failed to move past the resistance level of $1350 and has declined more against the USD.
Currently, there is a bearish trendline with a $1,250 resistance between BCH/USD. Although it is correcting higher, it may face a few barriers during the correction and may be pushed back to $1,250.50.
The price of BCH is under serious pressure trading below $1,300 and may decline even more if it fails to go above $1,250 soon.
Bitcoin Cash Faces Tough Decline
The pair had a minor upside correction recently which was above $1,300. After that, it traded towards $1,340 and sellers tried to protect the upside move. The pair subsequently started to decline below $1,300. As sellers gained momentum, the price went even lower reaching the $1,240 and $1,220 support levels.
The decline was so bad that BCH almost tested $1,150. At $1,156, a low was formed but an upward correction rally started shortly after. At the time of writing, it was testing the 23.6% Fib retracement level from the last $1,339 to $1,156 dip in price.
There are many barriers on the way for buyers near $1,220.50. There is a bearish trendline at the $1,250 resistance level. The price is trading near the 50% Fib level from the last $1,339 to $1,156 drop with resistance at $1,248.
From the price chart, the price is almost under bearish pressure trading below $1250. To minimize the risk of more decline, a break is needed above $1,240.50. If not, there will be decline as low as $1,100 soon.
There is a bearish sentiment on the MACD for BCH and USD. The relative strength index is recovering from the last 30 level. The major support level you should look out for is $1,150 while the major resistance level is $1,250.
The next few days of trading are crucial to the the pair’s success short and long term. If the decline continues, sellers may be forced to sell out which would trigger a downward rally.