HomeAltcoin NewsBitcoin Cash Analysis: BCH Facing Uphill Task, Can Bulls Gain Traction?

Bitcoin Cash Analysis: BCH Facing Uphill Task, Can Bulls Gain Traction?

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  • Bitcoin cash price failed to settle above the $330 resistance and declined against the US Dollar.
  • The price is now trading with a bearish below the $310 support area.
  • There is a significant bearish trend line forming with resistance near $308 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair could start a strong upward move if it breaks the $310 and $330 resistance levels.

Bitcoin cash price is facing a significant resistance near the $310.00 area against the US Dollar. BCH price could either climb above $310 or it might extend losses below the $275 support.

Bitcoin Cash Price Analysis

Recently, bitcoin cash price recovered from the $255 swing low against the US Dollar. The BCH/USD pair broke the $300 resistance level to start the recovery. Moreover, it broke the $320 resistance and the 55 simple moving average (4-hours). However, the bulls struggled to remain in action above the $330 resistance. A swing high was formed near $345 and the price started a fresh decline.

It traded below the $330 and $320 levels to move into a bearish zone. Moreover, there was a break below the 50% Fib retracement level of the last recovery from the $255 low to $345 high. The price settled below the $310 level and the 55 simple moving average (4-hours). Recently, it spiked below the 61.8% Fib retracement level of the last recovery from the $255 low to $345 high.

More importantly, there is a significant bearish trend line forming with resistance near $308 on the 4-hours chart of the BCH/USD pair. If the pair breaks the trend line and surpassed the $310 level, it could correct higher. The main resistance is near the $330 level. Therefore, an upside break above the $330 level may perhaps start a strong rise in the coming sessions.

Conversely, if there is no upside break above $310 or $330, the price could continue to decline. An immediate support is at $275. It represents the 76.4% Fib retracement level of the last recovery from the $255 low to $345 high. Below the $275 support, the price will most likely retest the $255 swing low.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, bitcoin cash price is clearly facing strong resistances near the $310 and $330 levels. If the bulls continue to struggle, there is a risk of more downsides below $275 and $255 in the near term.

Technical indicators

4 hours MACD – The MACD for BCH/USD is currently 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 – $275 and $255.

Key Resistance Levels – $310 and $330.

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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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