- Bitcoin cash price rallied recently and tested the $250 resistance zone against the US Dollar.
- The price is currently correcting gains and trading above the $230 support area.
- There was a break above a major bearish trend line with resistance near $224 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair is likely to make another attempt to climb above the key $250 resistance area.
Bitcoin cash price is showing a lot of positive signs above $230 against the US Dollar. BCH/USD seems to be setting up for a sharp rally above the $245 and $250 levels in the near term.
Bitcoin Cash Price Analysis
In the past few sessions, there were mostly positive moves in bitcoin cash price above the $220 resistance against the US Dollar. BCH price even gained pace above the $230 resistance and the 55 simple moving average (4-hours).
The upward move was such that the price spiked above the $245 resistance. During the rise, there was a break above a major bearish trend line with resistance near $224 on the 4-hours chart of the BCH/USD pair.
It tested the $250 resistance area and recently corrected lower. There was a downside correction below the $240 level. Besides, there was a break below the 23.6% Fib retracement level of the recent rise from the $210 swing low to $250 high.
However, the decline was protected by the $230 support area. It seems like the price remained well bid above the 50% Fib retracement level of the recent rise from the $210 swing low to $250 high.
It is currently consolidating gains above the $230 level. If there are more downsides, the next key support is seen near the $220 level. The 55 simple moving average (4-hours) is also near $220 to act as a strong support.
On the upside, an initial hurdle is near the $242 and $245 levels. The main resistance is now near the $250 level. A successful close above the $250 barrier could open the doors for a larger upward move in the coming sessions.
Looking at the chart, bitcoin cash price is clearly showing a lot of positive signs above the $220 and $230 support levels. Therefore, there are high chances of more gains above the $245 and $250 resistance levels.
Technical indicators
4 hours MACD – The MACD for BCH/USD is currently gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 60 level.
Key Support Levels – $230 and $220.
Key Resistance Levels – $245 and $250.
