Bitcoin Cash Price Technical Analysis – BCH/USD Could Decline Further

Key Points

bitcoin cash price is under a lot of pressure and is trading well below the $700 level against the US Dollar.
There is a major bearish trend line forming with current resistance at $660 on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair has to move above $660 and $700 to start a fresh upward wave in the near term.

bitcoin cash price declined heavily and tested the $625 level against the US Dollar. BCH/USD remains at a risk of more losses as long as it is below $660.

bitcoin Cash Price Decline

There was a massive drop in bitcoin cash price below the $700 support level against the US Dollar. The price declined and traded below the $650 level. A low was formed near the $625 level from where a minor upside correction was initiated. At the moment, the price is trading near the 23.6% Fib retracement level of the last downside move from the $707 high to $625 low.

More importantly, there is a major bearish trend line forming with current resistance at $660 on the hourly chart of the BCH/USD pair. The pair has to move above the $660 level to start an upside move in the short term. The next resistance could be the 50% Fib retracement level of the last downside move from the $707 high to $625 low at $696. However, the most important resistance is near the $700 level and the 100 hourly simple moving average. A break and close above the $700 level and the 100 hourly SMA is needed for more gains.

On the downside, the recent low near $625 is tiny support followed by the $600 handle.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is currently showing tiny recovery signs.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just around the 50 level.

Major Support Level – $625

Major Resistance Level – $700

Charts courtesy – Trading View

Published at Mon, 02 Apr 2018 04:08:55 +0000

Analysis

May 28, 2017

Bitcoin Plummets $600 Following Volatile Thursday Trading

bitcoin’s price suffered more losses on Friday following Thursday’s drop and subsequent rebound, plummeting 25% in a single day.

While it appeared that bitcoin had regained its historic upward momentum following Thursday’s $500 drop, Friday proved even more turbulent as prices dived $600 from $2.5k towards $1.9k. As of Saturday afternoon, bitcoin’s price appears to have stabilized around $2.1k.

What Goes Up, Must Come Down

bitcoin’s price drop follows a week of unprecedented growth, in which it climbed from $2000 to an all-time high of $2800. Many claimed that a correction was overdue and that bitcoin is back on its way towards $3,000.

Others have issued dire warnings of a bitcoin bubble that may just now be popping. Older investors can still recall the sting of bitcoin’s infamous 2013 crash (and subsequent destruction of the Mt. Gox exchange), and are wary of repeating the same mistakes. bitcoin’s price also has a repeatable history of spiking suddenly before crashing to a higher, more stable level.

Friday, Bloody Friday

Traders have historically used Fridays to sell off securities or place shorts, anticipating a price drop come Monday morning due to what has been called the “weekend effect“. The upcoming long weekend combined with Thursday’s high volatility likely fueled a large sell-off in the cryptocurrency market. bitcoin’s influx of new investors following its price increases may have also spurred a panic sell.

@alistairmilne Long weekend, no fiat, exchange issues. I’d call a bottom at $1900 UNLESS and exchange goes bust or something like that.

— Vinny Lingham (@VinnyLingham) May 26, 2017

You Bought the Ticket, Now Ride the Coaster

Experienced traders have continuously warned new investors about bitcoin’s notorious volatility. In a Reddit thread chastising those who bought at the top on FOMO (“fear of missing out”), one Reddit user had some choice words to share:

Now here’s the question: did you buy bitcoin just because it was worth a certain amount of dollars, or did you buy it to hold a piece of the action? This is a piece of the action. Roller coaster to the moon has its ups and downs.” – zomgitsduke

Another thread was created by a user claiming to have dumped $45k into BTC at its top. He intends to exercise discipline and hold:

“Genuinely don’t give a s— that the price has corrected/crashed/whatever you want to call it. It’ll be back sooner or later. bitcoin is long term. Don’t weep.” – thesilentwitness

bitcoin To The Moon

Despite these recent setbacks, many are still confident that bitcoin’s run isn’t over yet. The market appears to remain Bullish as traders look to buy in on the massive price dip.

Do you think bitcoin is headed back up? Or do you think that the bitcoin bubble has finally burst? Tell us in the comments below!

Images courtesy of WorldCoinIndex, Shutterstock

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