HomeAltcoin NewsBitcoin Cash Analysis: BCH Trading Near Make-or-Break Levels

Bitcoin Cash Analysis: BCH Trading Near Make-or-Break Levels

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  • Bitcoin cash price is facing a strong resistance near the $308 level against the US Dollar.
  • The price is currently trading above a couple of key supports near the $288 and $282 levels.
  • There is a major bullish trend line forming with support near $286 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair could decline further if there is a break below $286 and $284.

Bitcoin cash price is correcting gains below the $300 level against the US Dollar. BCH/USD might extend its correction towards the $268 support area.

Bitcoin Cash Price Analysis

In the past few days, there was a steady increase in bitcoin cash price above the $268 and $284 resistance levels. Moreover, BCH price settled above the $280 level and the 55 simple moving average (4-hours).

Finally, the price traded above the key $300 resistance area. However, the price struggled to gain momentum above the $307 and $308 resistance levels. There were more than two attempts to surpass $308, but the bulls failed.

A swing high was formed near $308 and the price is currently correcting lower.  It traded below the $300 level. Besides, there was a break below the 50% Fib retracement level of the recent wave from the $269 low to $307 high.

At the moment, the price is trading near the $286 support area and the 55 simple moving average (4-hours). Additionally, there is a major bullish trend line forming with support near $286 on the 4-hours chart of the BCH/USD pair.

The 61.8% Fib retracement level of the recent wave from the $269 low to $307 high is near the $284 level. Therefore, a downside break below the $286 and $284 support levels might start a downside extension.

The next key support area is near the $268 level, below which bitcoin cash price might continue to slide towards the $250 level.

On the upside, an initial resistance is near the $300 level. Having said that, the main resistance is near the $307 and $308 levels. A clear break above the $308 level could set the pace for a move towards the $320 and $330 levels.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearly trading near a crucial support at $286. If it fails to stay above $286 and $284, there could be an extended downside correction. Conversely, if may perhaps climb above the $308 resistance.

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 just below the 50 level.

Key Support Levels – $284 and $268.

Key Resistance Levels – $300 and $308.

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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