HomeAltcoin NewsBitcoin Cash Analysis: Bulls Struggle To Clear Key Hurdle

Bitcoin Cash Analysis: Bulls Struggle To Clear Key Hurdle

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  • Bitcoin cash price started a fresh decline from the $250 zone against the US Dollar.
  • The price is now trading below the $240 zone and the 55 simple moving average (4 hours).
  • There is a key declining channel forming with resistance near $238 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could start a fresh decline if it stays below the $242 resistance zone.

Bitcoin cash price is struggling below the $240 zone against the US Dollar, like Bitcoin. BCH/USD could restart its decline if it fails near $240 or $242.

Bitcoin Cash Price Analysis

Bitcoin cash price struggled to continue higher above the $250 resistance zone. BCH formed a short-term top near $243 before it started a fresh decline. There was a drop below the $242 and $240 support levels.

It even declined below the $230 support level. The price tested the $220 support. A low is formed near the $220.41 level and the price is now correcting losses. It climbed a few points higher above the $230 level. However, BCH is now trading below the $240 zone and the 55 simple moving average (4 hours).

There is also a key declining channel forming with resistance near $238 on the 4-hour chart of the BCH/USD pair. Immediate resistance is near the channel resistance or $240 or the 50% Fib retracement level of the downward move from the $257.84 swing high to the $220.41 low.

The next key resistance is near the $242 zone. It is close to the 61.8% Fib retracement level of the downward move from the $257.84 swing high to the $220.41 low. Any more gains above $242 could set the pace for a move toward the $250 level.

If there is a move above the $250 resistance, the price could rise toward the $258 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 $220 level, below which the bears might aim for $212 or even $208.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin cash price is now trading below the $240 zone and the 55 simple moving average (4 hours). Overall, the price could start a fresh decline if it stays below the $242 resistance zone.

Technical indicators

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

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

Key Support Levels – $230 and $220.

Key Resistance Levels – $240 and $242.

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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