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Bitcoin Cash Analysis: Risk of Fresh Drop to $105

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  • Bitcoin cash price started a fresh decline below the $120 zone against the US Dollar.
  • The price is now trading below the $118 zone and the 55 simple moving average (4 hours).
  • There was a break below a key bullish trend line with support at $116.00 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 $116 resistance zone.

Bitcoin cash price is declining below the $118 zone against the US Dollar, similar to Bitcoin. BCH/USD could extend losses if there is a close below $112.

Bitcoin Cash Price Analysis

Bitcoin cash price struggled to gain pace for a move above the $120 and $122 resistance levels. BCH formed a high near $120.93 and started a fresh decline.

There was a clear move below the $118.00 and $116.00 support levels. The pair even declined below the $116 support. It tested the $112 zone. A low is formed near $112.89 and the price is now consolidating losses. It is now trading above the 23.6% Fib retracement level of the recent decline from the $120.93 swing high to the $112.89 low.

Besides, it is trading below the $118 zone and the 55 simple moving average (4 hours). Immediate resistance is near the $116.00 level and the 55 simple moving average (4 hours).

The 50% Fib retracement level of the recent decline from the $120.93 swing high to the $112.89 low is also near $116. The next key resistance is near $118. Any more gains above $116 and $118 could set the pace for a move toward the $120 level.

If there is a move above the $120 resistance, the price could rise toward the $128 zone. If not, the price might continue lower below $112. Immediate support on the downside is near the $110 zone. The next major support is near the $105 level, below which the bears might aim for $100.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin cash price is now trading below the $118 zone and the 55 simple moving average (4 hours). Overall, the price could continue to move down if it stays below the $120 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 – $112 and $110.

Key Resistance Levels – $116 and $118.

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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