- Bitcoin cash price started a fresh decline from well above the $280 support against the US Dollar.
- The price is now trading below the $270 level and the 55 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $268 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair remains at a risk of more losses if there is a break below the $254 support zone.
Bitcoin cash price is facing an increase in selling below $280 against the US Dollar, similar to bitcoin. BCH/USD is likely to decline heavily if it breaks the $254 support zone
Bitcoin Cash Price Analysis
After facing a strong resistance near the $320 level, bitcoin cash price started a fresh decline. BCH price broke many supports near the $300 and $280 levels to move into a bearish zone.
The last swing high was formed near $291 before the price traded below the $280 support. The price even broke the $270 level and settled well below the 55 simple moving average (4-hours). It retested the $254 support zone and currently consolidating losses.
It traded above the 23.6% Fib retracement level of the recent decline from the $291 swing high to $254 low. However, the price is facing many hurdles near $268 and $270. There is also a major bearish trend line forming with resistance near $268 on the 4-hours chart of the BCH/USD pair.
The first key resistance is near the $272 level. It is close to the 50% Fib retracement level of the recent decline from the $291 swing high to $254 low.
The main breakout resistance could be $280 and the 55 simple moving average (4-hours). A clear break above the trend line and then a close above the $280 level could open the doors for a strong increase towards $300 and $320.
Conversely, there could be a downside break below the $255 and $254 support levels. The next key support is near the $243 level, below which bitcoin cash price is likely to retest the $230 support.
Looking at the chart, bitcoin cash price is clearly trading near a crucial support zone at $254. Overall, the price remains at a risk of more losses if there is a break below the $254 support zone.
Technical indicators
4 hours MACD – The MACD for BCH/USD is slowly losing pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.
Key Support Levels – $254 and $243.
Key Resistance Levels – $270 and $280.