- Bitcoin Cash is extending declines; likey to break 50% Fib retracement level support.
- The path of least resistance is to the downside; technical indicators show.
Bitcoin Cash has been unable to break above the critical resistance at $840 since it recovered from the recent drip supported at $780. The price has been pivotal around the 61.8% Fib retracement level with the last swing high of $874.95 and a low of $743.04 at 824.49. Moreover, the charts show a more than 2% drop on Monday, besides the trend is strongly bearish.
There is a contracting triangle pattern forming on the hourly chart. A breakout is imminent in the medium term, however, if the price breaks below the 50% Fib level support around $809.10, BCH/USD is much likely to extend declines below $800 and even retest the major support at one at $780.
At the moment, technical indicators like the stochastic and the RSI are heading south, besides, they are already in the oversold territory. This could also mean that the sellers are getting exhausted and the buyers could take a swing and cause a reversal. In the meantime, a support around $810 and above the 50% Fib retracement level is vital to avoid declines towards $800.
On the flipside, the broken 100 simple moving average support at $816.15 will stand in the way of upside movement. The regions at $820 and further up at the 61.8% Fib level will also offer resistance towards the critical $840. Bitcoin Cash must clear the resistance at $840 to be able to curve another trajectory path towards $900.
BCH/USD hourly chart
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