HomeAltcoin NewsBitcoin Cash Analysis: Bulls Facing Strong Breakout Resistance

Bitcoin Cash Analysis: Bulls Facing Strong Breakout Resistance

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  • Bitcoin cash price is currently recovering above the $200 resistance zone against the US Dollar.
  • The price is showing positive signs above the $210 and $215 levels.
  • There is a key bullish trend line forming with support near $224 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair is likely to surge higher if it clears the $240 and $244 resistance levels.

Bitcoin cash price is trading in a positive zone above $200 against the US Dollar. BCH/USD is likely setting up for a strong rise above the $240 resistance area in the near term.

Bitcoin Cash Price Analysis

In the past few days, there was a decent recovery wave in bitcoin cash price above the $200 resistance against the US Dollar. BCH price even settled above the $205 pivot level and 55 simple moving average (4-hours) to enter a positive zone.

Besides, there was a close above the 23.6% Fib retracement level of the key drop from the $352 swing high to $132 swing low. The price is now trading above the $220 zone, but it seems to be facing a strong resistance near the $240 level.

The bears also protected the 50% Fib retracement level of the key drop from the $352 swing high to $132 swing low. The price is currently trading in a range above the $220 support and the 55 simple moving average (4-hours).

More importantly, there is a key bullish trend line forming with support near $224 on the 4-hours chart of the BCH/USD pair. If there is a downside break below the trend line support, the price could decline towards the $200 support.

The next major support is near the $185 level, below which the bears are likely to aim a test of the $165 support area in the near term.

On the upside, the main hurdles are near the $240 and $245 levels. A successful close above the $245 level and a follow through above the $250 resistance is likely to accelerate gains in the coming sessions.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is trading in a range below the key $244 resistance area. If the bulls fail to push the price above the $244 resistance, there could be a sharp decline in the near term.

Technical indicators

4 hours MACD – The MACD for BCH/USD is currently losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is correcting lower from the 60 level.

Key Support Levels – $220 and $200.

Key Resistance Levels – $245 and $250.

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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