Bitcoin Cash traded upward yesterday reaching the $770 resistance level. However, there was a bearish break short-term that caused a decline below the $755 support level. If the trend continues, Bitcoin Cash will most likely test the $730 support soon. The decline started after the cryptocurrency failed to break the $780 resistance.
Will Bitcoin Cash (BCH) Price Recover Soon?
During the early hours of trading, there was an upside move above the $750 resistance against the USD. The Bitcoin Cash to USD trading pair also went above the $770 resistance but the problem started when it was unable to break the $780 resistance. This ignited a downward reaction that pushed the price below the 38.2% Fibonacci retracement level of the last rise from $709 to $780.
Bitcoin Cash (BCH) Price Today / USD
As the price declined, it broke below the short-term channel that had support at $755. The Bitcoin Cash to USD trading pair also cleared the support at $750. At the time of writing, it was testing the 100 hour SMA with an initial support around the 61.8% Fibonacci retracement level of the last rise from $709 to $780 which is at $736. The most significant support is currently between $720 and $730. These levels served as resistance earlier. If the price falls below this support, it may test the $700 level again.
Bitcoin Cash to USD Technical Analysis
According to Aayush Jindal from NewsBtc, Bitcoin Cash (BCH) will be able to prevent more losses if the price stays above the $730 level. If it rises above the $755 level, it will most likely rise to $770, $780, and eventually $800. The relative strength index is below 50 and the MACD on the hourly chart is in the bearish territory. The significant resistance level is $755 and the significant support level is $730. Traders should look out for these levels. There is no need to take a permanent position now until the market is more stable to minimize losses.