- Bitcoin cash price started a fresh decline from the $245 resistance against the US Dollar.
- The price broke the $235 support and revisited the $225 support zone.
- There is a major bearish trend line forming with resistance near $241 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair remains at a risk of more downsides if there is a daily close below the $225 support.
Bitcoin cash price is trading in a bearish zone and testing the $225 support against the US Dollar. BCH/USD must move above the $240 resistance to avoid more losses below $225.
Bitcoin Cash Price Analysis
In the past few days, bitcoin cash price made a few attempts to clear the $245 and $250 resistance levels against the US Dollar. However, BCH failed and started a fresh decline from the $245 resistance.
It broke the $235 support and the 55 simple moving average (4-hours). It revisited the $225 support zone and traded as low as $226. The price is currently consolidating losses above the $225 support zone and it seems to be preparing for the next move.
An initial resistance is near the $235 level and the 55 simple moving average (4-hours). It is close to the 50% Fib retracement level of the recent decline from the $245 high to $226 low.
Moreover, there is a major bearish trend line forming with resistance near $241 on the 4-hours chart of the BCH/USD pair. The trend line is close to the 76.4% Fib retracement level of the recent decline from the $245 high to $226 low.
Therefore, bitcoin cash price must break the $235 and $240 resistance levels to start a steady increase. The main hurdles are still near $245 and $250, above which the price could turn bullish.
Conversely, the price is likely to continue lower below the $225 support level. A successful daily close below the $225 support could open the doors for a push towards the $212 and $210 levels.
Looking at the chart, bitcoin cash price is clearly trading near a crucial juncture with support near the $225 level. It could either start a decent recovery above the $235 and $240 resistance levels or it might dive below the $225 support.
Technical indicators
4 hours MACD – The MACD for BCH/USD is currently losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now just above the 40 level.
Key Support Levels – $225 and $220.
Key Resistance Levels – $235 and $240.