HomeAltcoin NewsBitcoin Cash Analysis: BCH Could Accelerate Downside Below $290

Bitcoin Cash Analysis: BCH Could Accelerate Downside Below $290

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  • Bitcoin cash price is currently recovering and trading above the $300 level against the US Dollar.
  • The price is facing a few key resistances near the $320 and $325 levels.
  • Earlier, there was a break below a major bullish trend line with support near $336 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair could accelerate losses if there is a downside break below the $290 support area.

Bitcoin cash price is holding an important support near $290 against the US Dollar. BCH price could either climb above $325 or it might resume its decline below $290.

Bitcoin Cash Price Analysis

Earlier this week, bitcoin cash price surged above the $340 and $350 resistance levels against the US Dollar. The BCH/USD pair traded close to the $360 level, but it struggled to continue higher. A swing high was formed near the $358 level and recently the price started a strong decline. It broke the $350 and $340 support levels to move back into a bearish zone.

Moreover, there was a break below a major bullish trend line with support near $336 on the 4-hours chart of the BCH/USD pair. The pair even traded below the $300 support and settled below the 55 simple moving average (4-hours). Finally, the price found support near the $270 level and recovered above $280 and $290. Additionally, the price traded above the 50% Fib retracement level of the downward move from the $258 high to $267 low.

However, the upward move was capped near the $320 level. It seems like the 61.8% Fib retracement level of the downward move from the $258 high to $267 low acted as a resistance. At the moment, the price is trading inside an ascending channel with support near the $300 level. The main support is near the $290 level, below which the price could accelerate losses in the near term. In the mentioned case, it could revisit $270.

On the upside, there are a few key resistances near the $320 and $325 levels. A convincing break above the $325 level is needed for a decent upward move. Above $325, the price could climb above the $340 and $345 levels in the near term.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, bitcoin cash price is showing a few negative signs below the $320 and $325 resistance. However, a clear bearish break below the $290 support is needed for a downside acceleration.

Technical indicators

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

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently below 50, with a bearish angle.

Key Support Levels – $300 and $290.

Key Resistance Levels – $320 and $325.

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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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