HomeAltcoin NewsBitcoin Cash Analysis: BCH Facing Many Challenges

Bitcoin Cash Analysis: BCH Facing Many Challenges

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  • Bitcoin cash price is currently correcting higher above $180 against the US Dollar.
  • The price is facing many challenges on the upside near $188, $192 and $196.
  • There are two key bearish trend lines forming with resistance near $188 and $196 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair is likely to struggle near the $196 level and it might resume its decline.

Bitcoin cash price is showing a few positive signs above $180 against the US Dollar. However, BCH/USD must surpass $192 and $196 to move into an uptrend.

Bitcoin Cash Price Analysis

Earlier this month, we saw a steady decline in bitcoin cash price below the $200 support against the US Dollar. Moreover, BCH price settled below the $190 support and the 55 simple moving average (4-hours).

Finally, the price traded below the $180 support area and even spiked below $172. A swing low was formed near $170 and the price is currently correcting higher. It broke the $172 and $175 resistance levels.

Besides, there was a break above the 23.6% Fib retracement level of the last major decline from the $213 high to $170 low. However, the price is now facing many challenges on the upside near $188, $192 and $196.

Additionally, there two key bearish trend lines forming with resistance near $188 and $196 on the 4-hours chart of the BCH/USD pair. An intermediate resistance is near the $191 level.

The 50% Fib retracement level of the last major decline from the $213 high to $170 low is also near the $192 zone. Therefore, a clear break above the $192 and $196 resistance levels is must for a fresh increase.

The next major resistance is near the $204 level, above which it could accelerate higher. Conversely, the price could struggle to rise above $192 and $196.

In the mentioned case, the price is likely to resume its decline below the $185 and $182 levels. If the bulls fail to defend the $180 support, the price could revisit the $170 support area. Any further losses may perhaps push the price towards the $165 level.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is showing a few positive signs above the $182 and $185. Having said that, the price must climb above $192 and $196 to start a fresh increase. If not, it could start another decline below the $180 support area.

Technical indicators

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

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

Key Support Levels – $182 and $180.

Key Resistance Levels – $192 and $196.

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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