HomeAltcoin NewsBitcoin Cash Analysis: Trading Near Key Breakdown Support

Bitcoin Cash Analysis: Trading Near Key Breakdown Support

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  • Bitcoin cash price failed to clear the $235 resistance and declined sharply against the US Dollar.
  • The price is now trading near the key $220 support and the 55 simple moving average (4-hours).
  • There was a break below a crucial bullish trend line with support near $227 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could either continue lower towards $200 or it might recover from the $220 support.

Bitcoin cash price is struggling to hold gains above $220 against the US Dollar. BCH/USD must stay above $220 to avoid more losses towards $200 in the near term.

Bitcoin Cash Price Analysis

This week, bitcoin cash price managed to start an upside correction above the $220 pivot level against the US Dollar. BCH price even settled above the $220 pivot level and the 55 simple moving average (4-hours).

However, the bulls failed again to clear the $235 resistance zone. A high is formed near $235 and the price declined sharply below $230. There was a break below the 23.6% Fib retracement level of the upward move from the $203 swing low to $235 high.

More importantly, there was a break below a crucial bullish trend line with support near $227 on the 4-hours chart of the BCH/USD pair. The pair is now testing the $220 support level and the 55 simple moving average (4-hours).

The 50% Fib retracement level of the upward move from the $203 swing low to $235 high is also near the $220 level to provide support. If there is a downside break below the $220 support, there is a risk of another sharp decline.

The next major support is near the $206 level, below which the price may even break the $203 and $200 support levels in the near term. Conversely, the price might recover from the $220 support.

An initial resistance is near the $225 level, above which the price might rise above $230. The main resistance is still near the $235 level, above which the price could rally towards the $250 level.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is trading near the key $220 support and the 55 simple moving average (4-hours). The price could either continue lower towards $200 or it might recover from the $220 support.

Technical indicators

4 hours MACD – The MACD for BCH/USD is now gaining pace in the bearish zone.

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

Key Support Levels – $220 and $206.

Key Resistance Levels – $225 and $235.

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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