- 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.
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.