- Bitcoin cash price started a steady decline from the $260 resistance against the US Dollar.
- The price broke the $250 and $240 support levels to move into a bearish zone.
- There is a key bearish trend line forming with resistance near $236 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair remains at a risk of more losses below the $225 support unless it surges above $240.
Bitcoin cash price is showing signs of bearish continuation below the $225 support against the US Dollar. BCH/USD could only avoid more losses if it clears the $240 resistance zone.
Bitcoin Cash Price Analysis
This past week, bitcoin cash price failed to surpass the main $260 resistance zone against the US Dollar. As a result, BCH started a steady decline and broke the $250 support level.
The decline gained pace below the $240 support level and the 55 simple moving average (4-hours). The price traded as low as $224 and recently started an upside correction. There was a recovery wave above the $230 level.
The bulls pushed the price above the 23.6% Fib retracement level of the key drop from the $258 high to $224 low. Finally, there was a spike above the $240 level, but the price struggled to clear the 55 simple moving average (4-hours).
Bitcoin cash also failed to clear the 50% Fib retracement level of the key drop from the $258 high to $224 low. It seems like there is a key bearish trend line forming with resistance near $236 on the 4-hours chart of the BCH/USD pair.
The pair is now following a bearish path and trading well below $236 and $240. To start a steady increase, the price must surpass $236, the 55 simple moving average (4-hours), and the $240 pivot level.
Conversely, the price is likely to continue lower below the $230 support level. The main support is seen near the $225 level, below which there is a risk of more losses towards the $212 and $210 levels.
Looking at the chart, bitcoin cash price is clearly facing an uphill task near the $236 and $240 resistance levels. Therefore, it remains at a risk of more losses below the $225 support unless it surges above $240.
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 $220.
Key Resistance Levels – $236 and $240.
