- Bitcoin cash price declined heavily and traded below the $220 and $211 supports against the US Dollar.
- The price is currently correcting higher and it is trading above the $211 level.
- There is a major bearish trend line forming with resistance near $218 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair must break the $218 and $220 resistance levels to continue higher in the near term.
Bitcoin cash price is facing a strong resistance near $220 against the US Dollar. If BCH/USD fails to break the $220 hurdle, it could start a fresh decline below $210.
Bitcoin Cash Price Analysis
Earlier this week, there was a nasty decline in bitcoin cash price below the $220 support against the US Dollar. Moreover, BCH price traded below the $211 support and the 55 simple moving average (4-hours). It opened the doors for more losses below the $205 level.
Finally, the price traded below the $200 level and formed a low near the $197 level. Recently, it started an upside correction above the $200 and $205 levels. The price recovered above the 23.6% Fib retracement level of the recent decline from the $236 high to $197 swing low.
Moreover, the price climbed above the $211 level. However, bitcoin cash is facing a strong resistance near the $218 and $220 levels. There is also a major bearish trend line forming with resistance near $218 on the 4-hours chart of the BCH/USD pair.
More importantly, the 50% Fib retracement level of the recent decline from the $236 high to $197 swing low is acting as a strong resistance near $218. Therefore, an upside break above the $218 and $220 levels is needed for more gains in the near term.
If there is no upside break above $220 and the 55 simple moving average (4-hours), there could be a fresh decline. An immediate support is near the $211 level, below which the price could decline towards the $206 level. Any further losses may perhaps call for more losses towards the $200 level.
Looking at the chart, bitcoin cash price is clearly facing many hurdles near the $218 and $220 levels. Therefore, it could either surge above the $220 level or start a fresh decline. On the upside, a clear break above the $220 barrier may perhaps push the price towards the $235 and $240 resistance levels in the near term.
Technical indicators
4 hours MACD – The MACD for BCH/USD is currently gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently recovering towards the 50 level.
Key Support Levels – $211 and $206.
Key Resistance Levels – $218 and $220.
