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Bitcoin Cash Analysis: Risk of Downside Thrust Below $230

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  • Bitcoin cash price started a fresh decline below the $255 zone against the US Dollar.
  • The price is now trading below the $250 zone and the 55 simple moving average (4 hours).
  • There is a connecting bearish trend line forming with resistance near $248 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could continue to move down if it stays below the $254 resistance zone.

Bitcoin cash price is declining below the $250 zone against the US Dollar, similar to Bitcoin. BCH/USD could extend losses if there is a close below $230.

Bitcoin Cash Price Analysis

Bitcoin cash price remained in a bearish zone below the $285 and $280 resistance levels. BCH traded below the $265 support level to move further into a bearish zone.

There was a clear move below the $255 and $250 support levels. The pair even spiked below the $235 level. A low is formed near $231.62 and the price is now consolidating losses. It attempted a move above the 23.6% Fib retracement level of the downward move from the $295.00 swing high to the $231.62 low.

However, the bears seem to be active near $254 and $255. BCH is now trading below the $250 zone and the 55 simple moving average (4 hours). There is also a connecting bearish trend line forming with resistance near $248 on the 4-hour chart of the BCH/USD pair.

The next key resistance is near $264 and the 50% Fib retracement level of the downward move from the $295.00 swing high to the $231.62 low. Any more gains above $115 could set the pace for a move toward the $285 level.

If there is a move above the $285 resistance, the price could rise toward the $295 zone. If not, the price might continue lower below $235. Immediate support on the downside is near the $230 zone. The next major support is near the $225 level, below which the bears might aim for $212.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin cash price is now trading below the $250 zone and the 55 simple moving average (4 hours). Overall, the price could continue to move down if it stays below the $254 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 above the 50 level.

Key Support Levels – $230 and $225.

Key Resistance Levels – $254 and $264.

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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