- Bitcoin cash is eyeing a fresh increase above the $235 resistance against the US Dollar.
- The price is now trading above the $220 zone and the 55 simple moving average (4 hours).
- There is a major bullish trend line forming with support near $222 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
- The pair must clear $235 and $242 to start a fresh increase in the near term.
Bitcoin cash price is consolidating gains above $220 against the US Dollar, like Bitcoin. BCH/USD could start a fresh surge if it clears the $235 level.
Bitcoin Cash Price Analysis
Bitcoin cash price started a downside correction after it failed to clear the $250 zone. BCH formed a high near $249.80 before there was a bearish move.
The price declined below the $242 and $235 levels. There was a break below the 50% Fib retracement level of the upward move from the $206.50 swing low to the $249.80 high. However, the bulls are protecting more losses below the $220 support zone.
Bitcoin cash is now trading above the $220 zone and the 55 simple moving average (4 hours). On the upside, the price is facing resistance near the $235 level.
The next major resistance is near $242, above which the price may perhaps start a strong increase. The next major resistance is near the $250 level. Any more gains above $250 could set the pace for a move toward the $272 level.
If not, the price might continue to move down. Immediate support on the downside is near the $222 level. There is also a major bullish trend line forming with support near $222 on the 4-hour chart of the BCH/USD pair. The trend line is near the 61.8% Fib retracement level of the upward move from the $206.50 swing low to the $249.80 high.
The first major support sits near the $220 level. The next major support is near $216, below which the bears might aim for $208.
Looking at the chart, Bitcoin Cash’s price is now trading above the $220 zone and the 55 simple moving average (4 hours). Overall, the price must clear $235 and $242 to start a fresh increase in the near term.
Technical indicators
4 hours MACD – The MACD for BCH/USD is gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is above the 50 level.
Key Support Levels – $222 and $220.
Key Resistance Levels – $235 and $242.
