HomeAltcoin NewsBitcoin Cash Analysis: Bears Aiming Retest of The Key $225 Support

Bitcoin Cash Analysis: Bears Aiming Retest of The Key $225 Support

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  • Bitcoin cash price started a fresh decline after it topped near the $280 level against the US Dollar.
  • The price is down more than 5% and it broke the key $250 support area.
  • There was a break below a connecting bullish trend line with support near $246 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair is likely to continue lower and it could even retest the $225 support area.

Bitcoin cash price is showing a few bearish signs below $250 against the US Dollar. BCH/USD bears seem to be aiming more losses towards $225 or $220 in the near term.

Bitcoin Cash Price Analysis

Earlier this week, there was a sharp rise in bitcoin cash price above the $250 resistance against the US Dollar. BCH price even settled above the $260 resistance and the 55 simple moving average (4-hours).

Finally, the price climbed above the $275 level, but it faced a strong resistance near the $280 zone. The price traded as high as $281 and recently started a fresh bearish wave.

There was a break below the $250 support level and the 55 simple moving average (4-hours). Moreover, there was a break below a connecting bullish trend line with support near $246 on the 4-hours chart of the BCH/USD pair.

The pair even declined below the 50% Fib retracement level of the key upward move from the $224 low $281 high. On the downside, an initial support is near the $235 level.

The 76.4% Fib retracement level of the key upward move from the $224 low $281 high is also acting as a support. If the price fails to stay above the $235 support, there are chances of more losses towards the key $225 support area in the near term.

Any further losses may perhaps clear the path for more losses in the near term towards the $220 and $205 levels. On the upside, the previous support near $250 and the 55 simple moving average (4-hours) could act as a hurdle for the bulls. A clear break above $250 is needed for a fresh increase.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearly showing a few bearish signs below the $250 level. Therefore, there are high chances of more downsides towards $225 and $220.

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 now well below the 50 level.

Key Support Levels – $225 and $205.

Key Resistance Levels – $250 and $265.

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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