- Bitcoin cash price started a fresh increase after testing the $230 support against the US Dollar.
- The price is back above the $245 resistance and testing the 55 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $258 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair is likely to start a strong rally if it clears the $255 and $258 resistance levels.
Bitcoin cash price is gaining momentum above $245, similar to bitcoin against the US Dollar. BCH/USD is currently attempting a crucial upside break above $255 and $258.
Bitcoin Cash Price Analysis
This week, bitcoin cash price found a strong support near the $230 zone against the US Dollar. BCH price started a fresh increase and broke the $240 and $245 resistance levels.
The price even climbed above the 23.6% Fib retracement level of the downward move from the $271 swing high to $231 swing low. The bulls are gaining strength and the price is now showing positive signs above the $250 resistance level.
Besides, the price is trading just above the 50% Fib retracement level of the downward move from the $271 swing high to $231 swing low. However, the price is facing a strong resistance near $255, $258, and the 55 simple moving average (4-hours).
There is also a major bearish trend line forming with resistance near $258 on the 4-hours chart of the BCH/USD pair. The price must break the $255 resistance, the 55 simple moving average (4-hours), and the bearish trend line to start a strong rally in the near term.
If they succeed, there are chances of a steady rise towards the $265 and $270 resistance level. Any further gains could lead it towards the $280 level. Conversely, there could be a fresh decline below the $250 level.
An initial support on the downside is near $245. The main support is near the $238 level, below which the price might revisit the $230 support zone.
Looking at the chart, bitcoin cash price is clearing gaining pace above the $245 and $250 levels. Overall, the price is likely to start a strong rally if it clears the $255 and $258 resistance levels.
Technical indicators
4 hours MACD – The MACD for BCH/USD is slowly gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently rising above the 50 level.
Key Support Levels – $245 and $240.
Key Resistance Levels – $255 and $258.