Key Points

·      Bitcoin cash price declined sharply and moved below the $1,000 support against the US Dollar.

·      There was a break below a crucial bullish trend line with support at $1,010 on the hourly chart of the BCH/USD pair (data feed from Kraken).

·      The pair is now trading below the $900 level and it remains at a risk of more losses.

Bitcoin cash price is under a lot of pressure below $1,000 against the US Dollar. BCH/USD is likely to extend declines below the $900 level.

Bitcoin Cash Price Decline

There was a solid rise in selling pressure on bitcoin cash price, which pushed it below $1,000 against the US Dollar. The price declined sharply after it failed to move above the $1,050 level and the 100 hourly simple moving average. Sellers got control and pushed the price below the $950 and $900 support levels, which is a bearish sign in the near term.

More importantly, there was a break below a crucial bullish trend line with support at $1,010 on the hourly chart of the BCH/USD pair. The pair traded as low as $870 recently and it remains at a risk of more losses. An initial resistance on the upside is around the 23.6% Fib retracement level of the last decline from the $1,060 high to $870 low. However, the most important resistance is now around $960-970. The 50% Fib retracement level of the last decline from the $1,060 high to $870 low is also near $970.

Any major upside correction from the current levels could face sellers near $960 and $970. Above $970, the $1,000 level is a key barrier. On the downside, the recent low of $870 is a short term support followed by $850.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is showing a lot of bearish signs.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now in the oversold levels.

Major Support Level – $850

Major Resistance Level – $970