Key Points

Bitcoin cash price extended its decline and even broke the $380 support area against the US Dollar.

This week’s highlighted two bearish trend lines with current resistance near $380 on the hourly chart of BCH/USD (data feed from Kraken) are intact.

The price is likely to decline further and it could even test the $320 level in the near term.

Bitcoin cash price fell sharply below $400 against the US Dollar. BCH/USD is about to decline further and it could soon break $340.

Bitcoin Cash Price under Heavy Pressure

There were further declines in Bitcoin cash price as it failed to stay above the $400 support against the US Dollar. The price broke yesterday’s low of $392 and was even able to clear the $380 support. There was a sharp selloff and the price declined below the $350 level. A low was formed at $346.8 from where the price is currently attempting a tiny recovery.

An initial hurdle on the upside is near the 23.6% Fib retracement level of the last drop from the $405 high to $346 low. The most important point is the fact that this week’s highlighted two bearish trend lines with current resistance near $380 on the hourly chart of BCH/USD are still in place. It seems like the price won’t be able to move above the 38.2% Fib retracement level of the last drop from the $405 high to $346 low. It is poised for more losses below $360.

There are high chances of it breaking the recent low of $346. The next major support is around the $320 level where buyers might emerge.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is currently recovering, but likely to stay in the bearish zone.

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

Major Support Level – $320

Major Resistance Level – $380

Charts courtesy – Trading View, Kraken