HomeAltcoin NewsBitcoin Cash Analysis: Correcting Gains, Key Supports Nearby

Bitcoin Cash Analysis: Correcting Gains, Key Supports Nearby

-

  • Bitcoin cash price rallied and gained pace above the $255 and $260 resistance levels against the US Dollar.
  • The price traded to a new monthly high at $280 before starting a downside correction below $270.
  • There is a key bullish trend line forming with support near $260 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair is likely to retest the $255 support zone before it starts a fresh increase in the near term.

Bitcoin cash price remained in a bullish zone above $250 against the US Dollar. BCH/USD is currently correcting gains, but it is likely to find bids near $255 or $250.

Bitcoin Cash Price Analysis

This week, bitcoin cash price started a strong increase above the $255 resistance against the US Dollar. BCH price even gained pace above the $265 and $270 resistance levels.

Finally, the price broke the $275 level and traded to a new monthly high at $280. Recently, there was a downside correction below the $270 level and the 55 simple moving average (4-hours). It traded as low as $258 and it is currently stuck in a range.

There was a break above the $260 level, plus the 23.6% Fib retracement level of the recent decline from the $280 high to $258 low. However, the bulls seem to be facing a strong resistance near the $270 level.

The 50% Fib retracement level of the recent decline from the $280 high to $258 low is also near the $270 level to act as a resistance. A successful close above the $270 resistance is needed to start a fresh increase. The next major resistance is near the $280 level.

Conversely, there could be a downside break below the $262 and $260 support levels. There is also a key bullish trend line forming with support near $260 on the 4-hours chart of the BCH/USD pair.

The main support is near the $255 level, where the bulls are likely to take a strong stand. If there are more losses, the price could continue to move down below $250.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearing trading nicely above the $255 and $250 levels. However, the price likely to retest the $255 support zone before it starts a fresh increase in the near term.

Technical indicators

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

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

Key Support Levels – $258 and $255.

Key Resistance Levels – $270 and $280.

FOLLOW US

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.

Upcoming Events

Most Popular