HomeAltcoin NewsBitcoin Cash Analysis: Bears Gain Strength Below $250

Bitcoin Cash Analysis: Bears Gain Strength Below $250

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  • Bitcoin cash price started a fresh decline from the $260 zone against the US Dollar.
  • The price is now trading below the $250 zone and the 55 simple moving average (4 hours).
  • There is a key bearish trend line forming with resistance near $238 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could continue to move down if it stays below the $240 resistance zone.

Bitcoin cash price is struggling below the $250 zone against the US Dollar, like Bitcoin. BCH/USD could restart its decline if it fails near $238 or $240.

Bitcoin Cash Price Analysis

Bitcoin cash price struggled to continue higher above the $260 resistance zone. BCH formed a short-term top near $258 before it started a fresh decline. There was a drop below the $252 and $250 support levels.

It even declined below the $232 support level. The price tested the $220 support. A low is formed near the $218.70 level and the price is now consolidating losses. Bitcoin cash is now trading below the $240 zone and the 55 simple moving average (4 hours).

If there is a fresh increase, it could face resistance near the $238 level. It is close to the 23.6% Fib retracement level of the downward move from the $298 swing high to the $218 low.

There is also a key bearish trend line forming with resistance near $238 on the 4-hour chart of the BCH/USD pair. The next major resistance is near the $240 level. Any more gains above $240 could set the pace for a move toward the $258 level. It is near the 50% Fib retracement level of the downward move from the $298 swing high to the $218 low.

If there is a move above the $258 resistance, the price could rise toward the $280 zone. If not, the price might continue lower below $230. Immediate support on the downside is near the $225 zone. The next major support is near the $218 level, below which the bears might aim for $202 or even $200.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin cash price is now trading below the $245 zone and the 55 simple moving average (4 hours). Overall, the price could start a fresh decline if it stays below the $240 resistance zone.

Technical indicators

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

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is below the 50 level.

Key Support Levels – $225 and $218.

Key Resistance Levels – $238 and $240.

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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