- Bitcoin cash price started a sharp decline after trading as high as $373 against the US Dollar.
- The price broke the $300 support and settled below the 55 simple moving average (4-hours).
- There was a break below a crucial contracting triangle with support at $320 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could restart its upward move if there is a clear break above the $280 and $288 levels.
Bitcoin cash price is holding the $250 support zone and recovering against the US Dollar, similar to bitcoin. BCH/USD is likely to rise sharply if it clears the $280 resistance.
Bitcoin Cash Price Analysis
This week, bitcoin cash price saw a lot of swing moves above $300 against the US Dollar. BCH price surged above the $350 level before the bears appeared near the $370-$375 zone.
A high was formed near $373 before the price started a sharp decline. There was a break below the $350 support level. There was also a break below a crucial contracting triangle with support at $320 on the 4-hours chart of the BCH/USD pair.
The pair spiked below the $300 support level and settled below the 55 simple moving average (4-hours). Finally, it found support near the $250 level and a low is formed near $251.
The price is currently recovering and trading above the $265 level. An initial resistance on the upside is near the $280 level. It is close to the 23.6% Fib retracement level of the downward move from the $373 swing high to $251 low.
The next major resistance is near the $288 level and the 55 simple moving average (4-hours). A clear break above the $280 and $288 levels could lift the price towards the $300 resistance. The next major resistance is near the $312 level or the 50% Fib retracement level of the downward move from the $373 swing high to $251 low.
Conversely, the price could fail to clear the $280 and $288 resistance levels. On the downside, the $255 and $250 levels are important supports. A clear break below the $250 level might lead the price towards $230.
Looking at the chart, bitcoin cash price is recovering higher from $250. Overall, the price could restart its upward move if there is a clear break above the $280 and $288 levels.
Technical indicators
4 hours MACD – The MACD for BCH/USD is slowly moving into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is currently recovering towards the 40 level.
Key Support Levels – $255 and $250.
Key Resistance Levels – $280 and $288.
