HomeAltcoin NewsBitcoin Cash Analysis: Recovery Could Be Capped Near $242

Bitcoin Cash Analysis: Recovery Could Be Capped Near $242

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  • Bitcoin cash price started a fresh decline below the $240 zone against the US Dollar.
  • The price is now trading below the $235 zone and the 55 simple moving average (4 hours).
  • There was a break below a key rising channel with support near $238 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could start a fresh decline if it stays below the $242 resistance zone.

Bitcoin cash price is struggling below the $242 zone against the US Dollar, like Bitcoin. BCH/USD could restart its decline if it fails near $234 or $242.

Bitcoin Cash Price Analysis

Bitcoin cash price remained in a bearish zone below the $255 and $260 resistance levels. BCH traded below the $245 support level to move again into a bearish zone.

There was a clear move below the $242 zone. Besides, there was a break below a key rising channel with support near $238 on the 4-hour chart of the BCH/USD pair. The price even tested the $222 support. A low is formed near the $223.80 level and the price is now consolidating losses.

BCH is now trading below the $235 zone and the 55 simple moving average (4 hours). It is also just above the 23.6% Fib retracement level of the downward move from the $255 swing high to the $223 low. Immediate resistance is near the $235 level.

The next key resistance is near the $242 zone. It is close to the 61.8% Fib retracement level of the downward move from the $255 swing high to the $223 low.

Any more gains above $242 could set the pace for a move toward the $255 level. If there is a move above the $255 resistance, the price could rise toward the $265 zone.

If not, the price might continue lower below $225. Immediate support on the downside is near the $222 zone. The next major support is near the $215 level, below which the bears might aim for $200 or even $195.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin cash price is now trading below the $235 zone and the 55 simple moving average (4 hours). Overall, the price could start a fresh decline if it stays below the $242 resistance zone.

Technical indicators

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

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is below the 50 level.

Key Support Levels – $225 and $222.

Key Resistance Levels – $235 and $242.

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.

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