HomeAltcoin NewsBitcoin Cash Analysis: Approaching Next Significant Break

Bitcoin Cash Analysis: Approaching Next Significant Break

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  • Bitcoin cash price settled below the key $250 support against the US Dollar.
  • The price is currently consolidating above the $210 support and below the 55 simple moving average (4-hours).
  • There is a crucial contracting triangle forming with resistance near $228 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could either rally above the $230 resistance or decline heavily below $210-$200.

Bitcoin cash price is trading in a range above $210 and preparing for the next move against the US Dollar. BCH/USD could recover nicely if it clears the $230 resistance level.

Bitcoin Cash Price Analysis

This past week, we saw a sharp decline in bitcoin cash price below the $260 support against the US Dollar. BCH price even settled well below the $250 support and the 55 simple moving average (4-hours).

The pair traded close to the $200 support and a low is formed near the $205 level. Recently, there was a minor upside correction above the $215 level. The price even attempted to clear the 23.6% Fib retracement level of the downward move from the $297 high to $205 low.

However, the price seems to be facing a strong resistance near the $230 level and the 55 simple moving average (4-hours). There is also a crucial contracting triangle forming with resistance near $228 on the 4-hours chart of the BCH/USD pair.

The pair must break the triangle resistance, $230, and the 55 simple moving average (4-hours) to start a strong recovery in the near term. The next major resistance on the upside is near the $250 level.

The 50% Fib retracement level of the downward move from the $297 high to $205 low is also near the $250 level to prevent gains. Any further gains could lead the price towards the $280 resistance. Conversely, the price may perhaps continue to move down below the $215 support.

If there is a bearish break below the triangle support and $215, there is a risk of a sharp decline below the main $200 support in the coming sessions.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearly consolidating above the $210 support and preparing for the next move. The price could either rally above the $230 resistance or decline heavily below $210-$200.

Technical indicators

4 hours MACD – The MACD for BCH/USD is currently showing no major bullish sign.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is still well below the 50 level.

Key Support Levels – $215 and $200.

Key Resistance Levels – $230 and $250.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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