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HomeAltcoin NewsBitcoin Cash Analysis: BCH Facing Key Resistance, Can Bulls Make It?

Bitcoin Cash Analysis: BCH Facing Key Resistance, Can Bulls Make It?

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  • Bitcoin cash price declined sharply and even broke the $300 support against the US Dollar.
  • The price traded towards the $250 support level and it is currently correcting higher.
  • There is a crucial bearish trend line forming with resistance near $340 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair could struggle to break the key $320, $330 and $340 resistance levels in the near term.

Bitcoin cash price is correcting from the $260 support area against the US Dollar. However, BCH price might find it difficult to continue higher above the $330 and $340 resistances.

Bitcoin Cash Price Analysis

This week, there was a strong decline in bitcoin cash price after it broke the $340 support area against the US Dollar. The BCH/USD pair even broke the $300 support and settled well below the 55 simple moving average (4-hours). The decline was such that the price spiked below the $280 support level and traded close to the $250 level. A new monthly low was formed near $254 and the price recently started an upside correction.

There was a break above the $280 resistance plus the 23.6% Fib retracement level of the last major drop from the $428 high to $254 swing low. However, the price is facing a lot of hurdles near the $320 and $330 levels. Moreover, the 55 simple moving average (4-hours) is also near the $330 level to act as a resistance. More importantly, there is a crucial bearish trend line forming with resistance near $340 on the 4-hours chart of the BCH/USD pair.

The 50% Fib retracement level of the last major drop from the $428 high to $254 swing low is also near the $340 level to act as solid resistance. Therefore, the bulls may face a lot of selling interest near the $330 and $340 levels. To start a fresh increase, the price must settle above $340 and the 55 simple moving average (4-hours). The next main resistance is near the $385 level plus the 76.4% Fib retracement level of the last major drop from the $428 high to $254 swing low.

On the downside, an immediate support is near the $300 level. If there are more losses, the price resume its decline below the $280 support level. The main supports on the downside are near the $260 and $250 levels.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, bitcoin cash price is currently correcting higher, but the $330 and $340 levels are significant barriers. Therefore, the price could either climb further above $350 or resume its decline below $300.

Technical indicators

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

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently struggling to stay above the 50 level.

Key Support Levels – $300 and $280.

Key Resistance Levels – $330 and $340.

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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