HomeAltcoin NewsBitcoin Cash Analysis: Risk of Downside Break below $285

Bitcoin Cash Analysis: Risk of Downside Break below $285

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  • Bitcoin cash price failed to clear the $320 resistance and corrected lower against the US Dollar.
  • The price is now trading below the $300 level and the 55 simple moving average (4-hours).
  • There is a major contracting triangle forming with support at $285 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could decline heavily if there is a clear break below the $285 support zone.

Bitcoin cash price is struggling to stay above $285 against the US Dollar, while bitcoin is well above $19,000. BCH/USD is likely to decline heavily if it breaks the $280-$285 support zone

Bitcoin Cash Price Analysis

After testing the $250 support zone, bitcoin cash price started a decent increase above the $270 and $280 levels. BCH price even broke the $300 resistance and the 55 simple moving average (4-hours).

However, the price struggled to continue higher above $320 and formed a high at $322. Recently, there was a fresh decline below the $305 support. There was a break below the 23.6% Fib retracement level of the upward move from the $251 swing low to $322 high.

It is now trading below the $300 level and the 55 simple moving average (4-hours). It seems like the price is finding it hard to stay above the $285 support.

There is also a major contracting triangle forming with support at $285 on the 4-hours chart of the BCH/USD pair. The triangle support is close to the 50% Fib retracement level of the upward move from the $251 swing low to $322 high.

If there is a downside break below the $285 and $280 support levels, there could be a sharp decline. The next key support is near the $265 level, below which bitcoin cash price is likely to retest the $250 support.

Conversely, the price stays above the $285 support and start a fresh increase. An initial resistance is near the $300 level and triangle upper trend line. A close above the $300 barrier might lead the price towards the $320 and $325 resistance levels in the near term.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is struggling to stay above the $285 and $280 support levels. Overall, the price could decline heavily if there is a clear break below the $285 support zone.

Technical indicators

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

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

Key Support Levels – $285 and $265.

Key Resistance Levels – $300 and $320.

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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