HomeAltcoin NewsBitcoin Cash Analysis: Bulls Struggle To Protect This Key Support

Bitcoin Cash Analysis: Bulls Struggle To Protect This Key Support

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  • Bitcoin cash price started a downside correction from the $270 zone against the US Dollar.
  • The price is now trading above the $240 zone and the 55 simple moving average (4 hours).
  • There is a key contracting triangle forming with support at $242 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could continue to move down if it breaks the $242 and $240 support levels.

Bitcoin cash price is declining from the $270 zone against the US Dollar, like Bitcoin. BCH/USD must stay above $240 to start a fresh increase.

Bitcoin Cash Price Analysis

Bitcoin Cash price was able to gain pace for a move above the $245 and $250 resistance levels. BCH even traded above the $260 level before the bears appeared.

A high was formed near $269.96 before the price started a downside correction. There was a clear move below the $260 and $255 support levels. The pair traded below the 50% Fib retracement level of the upward move from the $224.00 swing low to the $269.96 high.

The bears even pushed the price below the $250 support. It is now trading above the $240 zone and the 55 simple moving average (4 hours). There is also a key contracting triangle forming with support at $242 on the 4-hour chart of the BCH/USD pair.

Immediate resistance is near the $250 level. The main resistance sits near the $260 level. Any more gains above $260 could set the pace for a move toward the $270 level. If there is a move above the $270 resistance, the price could rise toward the $288 zone.

If not, the price might continue lower below $245. Immediate support on the downside is near the $242 zone. The next major support is near the $240 level or the 61.8% Fib retracement level of the upward move from the $224.00 swing low to the $269.96 high, below which the bears might aim for $225. The next target for them may perhaps be near the $208 level.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin Cash price is now trading above the $240 zone and the 55 simple moving average (4 hours). Overall, the price could continue to move down if it breaks the $242 and $240 support levels.

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 – $242 and $240.

Key Resistance Levels – $250 and $260.

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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