HomeAltcoin NewsBitcoin Cash Analysis: Support Turned Resistance For The Bulls

Bitcoin Cash Analysis: Support Turned Resistance For The Bulls

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  • Bitcoin cash price failed to clear the $245 resistance and declined steadily against the US Dollar.
  • The price broke the $228 support zone, which may now act as a resistance.
  • There is a major bearish trend line forming with resistance near $228 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could extend its decline below $220 unless it recovers above $228 and $230.

Bitcoin cash price is back in a bearish zone below $230 against the US Dollar. BCH/USD remains at a risk of more losses below the $220 and $216 support levels.

Bitcoin Cash Price Analysis

Earlier this week, bitcoin cash price broke the $235 and $230 support levels against the US Dollar. BCH price even settled below the $230 level and the 55 simple moving average (4-hours).

As a result, there was a bearish break below the $228 support zone. The price even spiked below the $220 support and tested the $216 support. A low is formed near $216 and the price is currently correcting higher.

It is testing the $222 level, plus the 23.6% Fib retracement level of the recent decline from the $245 swing high to $216 low. On the upside, the first major resistance is near the $226 and $228 levels (support turned resistance).

There is also a major bearish trend line forming with resistance near $228 on the 4-hours chart of the BCH/USD pair. The main resistance is now near the $230 level or the 55 simple moving average (4-hours).

The 50% Fib retracement level of the recent decline from the $245 swing high to $216 low is also near the $230 resistance zone. Therefore, the price is likely to face a lot of hurdles on the upside near the $228 and $230 levels.

On the downside, the $220 level is an initiate support zone. The main support is near the $216 level, below which the bears are likely to aim a larger decline. The next support could be near the $200 handle.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is correcting higher from the $216 support. It must surpass the $230 resistance to start a fresh increase. If not, it might decline heavily below $220 and $216.

Technical indicators

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

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now below the 40 level.

Key Support Levels – $220 and $216.

Key Resistance Levels – $228 and $230.

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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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