- Bitcoin cash price is slowly moving higher and it is trading above $225 against the US Dollar.
- The price is currently consolidating below the $240 resistance and above the 55 simple moving average (4-hours).
- There is a crucial contracting triangle forming with resistance near $236 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could either rally above the $240 resistance or dive back towards the $200 handle.
Bitcoin cash price is showing positive signs above the $225 level against the US Dollar. BCH/USD is likely to surge above $240 as long as it is above the $225 support.
Bitcoin Cash Price Analysis
After forming a base above the $210 level, bitcoin cash price started a slow increase against the US Dollar. BCH price broke a couple of important hurdles near the $220 and $225 levels to move into a positive zone.
The price even settled above the $225 support and the 55 simple moving average (4-hours). It gained pace above the $230 level, but the bulls struggled to clear the $240 resistance. A high is formed near $242 and the price is currently consolidating gains.
There was a corrective wave below the 23.6% Fib retracement level of the upward move from the $218 low to $424 swing high. However, the price seems to be forming a strong support above the $225 level and the 55 simple moving average (4-hours).
There is also a crucial contracting triangle forming with resistance near $236 on the 4-hours chart of the BCH/USD pair. The triangle support is close to the 50% Fib retracement level of the upward move from the $218 low to $424 swing high.
If there is an upside break above the triangle resistance, bitcoin cash price is likely to surge above the $240 and $242 levels. The next key resistance is near the $250 level, above which the price might rise towards the $258 level.
Conversely, the price may perhaps break the triangle support and dive below the $225 support. The next major support is near the $210 level, followed by the $200 handle.
Looking at the chart, bitcoin cash price is clearly consolidating below the $240 resistance and above the 55 simple moving average (4-hours). The price could either rally above the $240 resistance or dive back towards the $200 handle.
Technical indicators
4 hours MACD – The MACD for BCH/USD is slowly gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level.
Key Support Levels – $225 and $210.
Key Resistance Levels – $236 and $240.
