HomeAltcoin NewsBitcoin Cash Analysis: Risk of Fresh Decline to $260

Bitcoin Cash Analysis: Risk of Fresh Decline to $260

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  • Bitcoin cash price started a fresh decline from the $345 resistance against the US Dollar.
  • The price is now trading below the $310 zone and the 55 simple moving average (4-hours).
  • There is a key bearish trend line forming with resistance near $310 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could continue to recover if there is a clear move above the $310 resistance zone in the near term.

Bitcoin cash price is struggling below $310 against the US Dollar, similar to bitcoin. BCH/USD must stay above $280 to avoid more downsides in the near term.

Bitcoin Cash Price Analysis

Bitcoin cash price attempted an upside break above the $345 and $350 resistance levels. However, BCH struggled near the $350 zone and formed a high near $345.

The price started a fresh decline below the $320 support level. There was a clear move below the $300 support level and the 55 simple moving average (4-hours). The price even tested the $260 support zone. A low was formed near $260 and the price is now correcting losses.

There was a recovery wave above the $280 and $285 resistance levels. BCH climbed above the 23.6% Fib retracement level of the key decline from the $345 swing high to $259 low.

However, it is now facing resistance near the $310 resistance and the 55 simple moving average (4-hours). There is also a key bearish trend line forming with resistance near $310 on the 4-hours chart of the BCH/USD pair. The trend line is near the 50% Fib retracement level of the key decline from the $345 swing high to $259 low.

The next major resistance is near the $318 level. A clear break above $318 and $320 might start a fresh increase. In the stated case, the price could rise towards the $350 level.

If not, it could start a fresh decline below $295. The next major support is near the $280 level, below which the bears gain strength. The next target for them may perhaps be near the $260 level.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is now trading below the $310 zone and the 55 simple moving average (4-hours). Overall, the price could continue to recover if there is a clear move above the $310 resistance zone in the near term.

Technical indicators

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

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

Key Support Levels – $280 and $260.

Key Resistance Levels – $310 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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