- 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.
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.