HomeAltcoin NewsBitcoin Cash Analysis: Downside Thrust In BCH Before Reversal?

Bitcoin Cash Analysis: Downside Thrust In BCH Before Reversal?

-

  • Bitcoin cash price currently correcting gains from the $255 resistance area against the US Dollar.
  • The price is approaching a couple of key supports near $227 and $225.
  • There is a major contracting triangle forming with support near $232 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could dip towards the $225-$227 support area before it starts a fresh increase.

Bitcoin cash price is slowly declining losing momentum below $240 against the US Dollar. BCH/USD could bounce back as long as there is no close below $215.

Bitcoin Cash Price Analysis

This week, bitcoin cash price gained bullish momentum after it broke the $215 resistance against the US Dollar. As a result, there was a break above the $225 resistance and the 55 simple moving average (4-hours).

Finally, the price rallied above the $240 and $250 levels. A new 2020 high is formed near $255 and the price recently started a downside correction. There was a break below the $240 level.

Moreover, the price traded below the 50% Fib retracement level of the upward move from the $220 low to $255 high. At the moment, the price is finding support near the $230 level.

Besides, there is a major contracting triangle forming with support near $232 on the 4-hours chart of the BCH/USD pair. The main support on the downside is near the $227 and $225 levels. The 76.4% Fib retracement level of the upward move from the $220 low to $255 high is also near $228.

More importantly, the 55 simple moving average (4-hours) is positioned near the $225 level to provide support. Therefore, a downside break below the $227 and $225 support levels might trigger a sharp decline in bitcoin cash.

The next major support is near the $215 area (the previous breakout zone). Any further losses may perhaps call for an extended decline towards the $200 level.

Conversely, the price could bounce back from $227 or $225. On the upside, a clear break above the $240 and $245 levels is needed for a fresh rally above the $250 level.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is approaching a couple of important supports near $225. In the short term, there could be bearish spike, but the price is likely to bounce back as long as it is above $225.

Technical indicators

4 hours MACD – The MACD for BCH/USD is currently losing momentum in the bearish zone.

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

Key Support Levels – $225 and $216.

Key Resistance Levels – $240 and $250.

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.

Follow us

0FansLike
0FollowersFollow
0SubscribersSubscribe

Most Popular