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HomeAltcoin NewsBitcoin Cash Analysis: BCH Attempting Crucial Upside Break

Bitcoin Cash Analysis: BCH Attempting Crucial Upside Break

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  • Bitcoin cash price is currently recovering and trading above $210 against the US Dollar.
  • The price is struggling to gain momentum above the $222 and $226 resistance levels.
  • There is a major bearish trend line forming with resistance near $222 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could start a nice upward move above the $221 and $222 resistance levels.

Bitcoin cash price is showing positive signs above the $210 level against the US Dollar. BCH/USD is likely to climb higher towards $250 as long as it is above $200.

Bitcoin Cash Price Analysis

After a major decline, bitcoin cash price found support near the $192 level against the US Dollar. BCH price formed a decent support base and recently started an upside correction above the $200 resistance.

Moreover, there was a close above the $200 pivot level and the 55 simple moving average (4-hours). The price gained momentum above the 23.6% Fib retracement level of the last decline from the $247 high to $192 low.

Finally, there was a break above a connecting bearish trend line with resistance near $211 on the 4-hours chart of the BCH/USD pair. The price even spiked above the $220 resistance area.

However, it seems to be struggling to gain momentum above the $222 and $226 resistance levels. Additionally, the 50% Fib retracement level of the last decline from the $247 high to $192 low is acting as a resistance.

More importantly, there is another major bearish trend line forming with resistance near $222 on the same chart. If there is a successful break above the $222 and $226 resistance levels, the price is likely to rise further in the near term.

The next key resistance area is near the $236 and $240 levels, above which it could rise towards the $250 level. Conversely, the price could fail to climb above the $222 and $226 resistance levels.

In the mentioned case, the price is likely to resume its decline below the $215 and $210 support levels. The main support is near the $200 level, below which there is a risk an extended decline towards the $185 level.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearly facing a strong resistance near the $222 and $226 levels. It could either rally above $226 or start a fresh decline towards the $200 and $192 support levels.

Technical indicators

4 hours MACD – The MACD for BCH/USD is currently gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently in the rising and is above the 50 level.

Key Support Levels – $210 and $200.

Key Resistance Levels – $226 and $238.

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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