HomeAltcoin NewsBitcoin Cash Analysis: BCH Likely To Break Lower Towards $260

Bitcoin Cash Analysis: BCH Likely To Break Lower Towards $260

Date:

Related stories

Bitcoin and Altcoins Drop Massively in Value Despite Upward Expectations

Despite news this week of inflation rates lower than...

It’s Not Just Degens, Institutions Love Memecoins Too

In a report released by Bybit on June 4,...

Bitpanda and Deutsche Bank Take their Relationship to the Next Level

Bitpanda, one of the leading European crypto trading and...
spot_imgspot_img
  • Bitcoin cash price is under a lot of pressure as it broke the $288 support against the US Dollar.
  • The price is currently trading near a major support at $269, with a bearish angle.
  • There are two major bearish trend lines forming with resistance near $280 and $290 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair remains at a risk of more losses below the $269 support area.

Bitcoin cash price is facing an increase in selling below $280 against the US Dollar. BCH/USD might extend its decline towards the $260 support area in the near term.

Bitcoin Cash Price Analysis

Recently, bitcoin cash price failed to break the $300 resistance area against the US Dollar. As a result, BCH price started a downward move and broke the $288 support area to move into a short term bearish zone.

Moreover, there was a close below the $286 support and the 55 simple moving average (4-hours). It opened the doors for more losses below the $280 and $276 support levels.

At the moment, the price is trading near the $269 support area. If there is a downside break below the $269 support, there is a risk of more losses below the $265 level. The next major support is near the $258 zone, below which there is a risk of more losses.

On the upside, an initial resistance is near the $276 area. Besides, the 23.6% Fib retracement level of the recent decline from the $300 high to $269 low is also near the $276 level.

More importantly, there are two major bearish trend lines forming with resistance near $280 and $290 on the 4-hours chart of the BCH/USD pair. Above the first trend line, the $186 level is a strong resistance.

Additionally, the 50% Fib retracement level of the recent decline from the $300 high to $269 low is likely to act as a resistance near the $285-$286 zone. To move into a positive zone, the price must clear the $286 resistance and the 55 simple moving average (4-hours).

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearly trading near a major support at $269. If it fails to stay above $270 and $269, there could be an extended decline towards the $260 area. On the upside, a clear break above $280 and $286 is needed for a fresh upward move in the near term.

Technical indicators

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

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently recovering from the 30 level.

Key Support Levels – $269 and $258.

Key Resistance Levels – $280 and $286.

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.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img