HomeAltcoin NewsBitcoin Cash Analysis: BCH Turned Sell On Rallies

Bitcoin Cash Analysis: BCH Turned Sell On Rallies

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  • Bitcoin cash price broke the key $290 support level to move into a downtrend against the US Dollar.
  • The price is currently trading in a bearish zone and it might struggle to correct above $290 and $300.
  • There is a key bearish trend line forming with resistance near $304 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair could extend its decline towards the $250 support if it breaks the $270 support.

Bitcoin cash price is now trading in a bearish zone below $290 against the US Dollar. An upside correction in BCH is likely to face sellers near $290 and $295.

Bitcoin Cash Price Analysis

In the past few days, bitcoin cash price struggled to break the $315 and $320 resistances against the US Dollar. As a result, the BCH/USD pair started a fresh decline and broke the $300 support level. Moreover, it broke the main $290 support level and settled below the 55 simple moving average (4-hours). It opened the door for more downsides and the price traded as low as $270.

The price is currently consolidating losses above $270. An immediate resistance is near the $280 level. Moreover, the 23.6% Fib retracement level of the recent slide from the $315 high to $270 low is also near $280. However, the main resistance on the upside is near the $290 level (the previous support area). Additionally, the 50% Fib retracement level of the recent slide from the $315 high to $270 low is also near the $292 level to stop gains.

More importantly, there is a key bearish trend line forming with resistance near $304 on the 4-hours chart of the BCH/USD pair. Therefore, the price is likely to struggle near the $290 and $292 resistance levels. Only a close above the $300 level and the 55 simple moving average (4-hours) might open the doors for a decent upward move.

An immediate support is near the $270 level. If there is a downside break below the $270 support, the price could decline heavily towards the $250 support in the near term. An intermediate support is near the $262 level.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, bitcoin cash price is clearly trading in a downtrend below $300 and $290. If there is an upside correction, the previous supports near $290, $292 and $300 are likely to act as barriers. On the downside, the $250 support holds the key for more losses.

Technical indicators

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

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

Key Support Levels – $270 and $250.

Key Resistance Levels – $290 and $300.

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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