Bitcoin cash price after trading above the $3000 level against the US Dollar (tethered) found strong offers. BCH/USD is now holding an important support at $1000.
Key Talking Points
- Bitcoin cash price made a sharp upside move above the $3000 level against the US Dollar (tethered) before trimming all gains.
- There is a major bullish trend line forming with support at $1000 on the 4-hours chart of the BCH/USD pair (data feed from Poloniex).
- The pair must stay above the $1000 level if it has to move back higher in the near term.
Bitcoin Cash Price Chart Analysis
There were nasty gains in bitcoin cash price during the past 5-6 sessions toward $3000 against the US Dollar (tethered, data feed by Poloniex). The price traded to a new all-time high of $3121 before it faced a strong sell wall.
Later, the price declined sharply and trimmed almost all of its gains by moving below $2000 and $1500. There was a break of the 50% Fibonacci retracement level of the last wave up from the $560 low to $3121 high.
There was a test of a major bullish trend line with support at $1000 on the 4-hours chart of the BCH/USD pair. The pair held the trend line support, but struggling to remain above the 76.4% Fibonacci retracement level of the last wave up from the $560 low to $3121 high.
Therefore, the trend line support holds a lot of importance for more declines below $1000. As long as BCH/USD is above $1000, there is a chance of it recovering back toward $1400 or $1500.
On the other hand, if it fails to hold $1000, it could trade toward the $800 support area. In the mentioned scenario, there is even a possibility that the price might test the $650 support as well.
The overall trend is now bearish unless BCH moves back above $1500. The 4-hour RSI for BCH/USD is now below 50 and heading south, which means more losses are possible.
Trade safe traders and do not overtrade!