- Bitcoin cash price started a fresh decline after it failed to stay above $400 against the US Dollar.
- The price broke a few key supports near the $350 and $340 levels.
- There was a break below a major contracting triangle with support near $331 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair remains at a risk of more losses below the $312 and $300 support levels in the near term.
Bitcoin cash price is declining and struggling to stay above $312 against the US Dollar. BCH/USD is likely to accelerate lower towards $272 if it breaks the $300 support.
Bitcoin Cash Price Analysis
This week, bitcoin cash price started a downside correction from well above the $365 level against the US Dollar. BCH price broke a few key supports near the $340 and $330 levels to enter a bearish zone.
Furthermore, there was a close below the $320 level and the 55 simple moving average (4-hours). The price even traded below the 50% Fib retracement level of the upward move from the $258 low to $405 high.
More importantly, there was a break below a major contracting triangle with support near $331 on the 4-hours chart of the BCH/USD pair. It is now trading near the $312 and $310 support levels.
The main support is near the $310 level, below which there is a risk of a larger decline. The next support is near the $294 level. It represents the 76.4% Fib retracement level of the upward move from the $258 low to $405 high.
If the price breaks the $294 support, it is likely to revisit the $272 support area in the near term. Any further losses may perhaps lead the price towards the main $250 support area.
On the upside, the price is likely to face a strong resistance near the $330 area. Additionally, the bulls need to gain strength above $335 and the 55 simple moving average (4-hours). If there is a successful close above $330 and $335, there are chances of a steady increase in the coming sessions.
Looking at the chart, bitcoin cash price is clearly moving into a bearish zone below $330 and $320. A successful close below the $300 support could start a downside extension towards the $272 support area in the near term.
Technical indicators
4 hours MACD – The MACD for BCH/USD is currently gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now well below the 50 level.
Key Support Levels – $312 and $300.
Key Resistance Levels – $330 and $335.
