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Bitcoin Cash (BCH) Could Dip Before Upside Acceleration

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  • Bitcoin cash price rebounded nicely after buyers appeared near $120 against the US Dollar.
  • The price climbed higher and broke the $125 and $130 resistance levels.
  • There is a major declining channel is in place with resistance at $132 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair must break the $132-134 resistance zone to accelerate towards $140 and $145 in the near term.

Bitcoin cash price recovered nicely, but it struggled near $132 against the US Dollar. BCH might correct a few points before it could attempt to clear the $132 and $134 resistance levels.

Bitcoin Cash Price Analysis

Recently, there was a strong recovery in bitcoin, ripple, Ethereum, and bitcoin cash against the US Dollar. Earlier, the BCH/USD pair traded below the $125 and $124 support levels. There was even a close below the $125 support and the 55 simple moving average (4-hours). However, the $120 support area acted as a strong buy zone and prevented further losses. Finally, the price started a solid rebound and broke the $125 and $128 resistance levels. There was also a spike above the $132 resistance and the 55 simple moving average (4-hours).

A swing high was formed near $133 and the price started consolidating gains. It seems like there is a strong resistance formed near the $132-134 resistance zone. The price recently dipped below the 50% Fib retracement level of the last wave from the $120 swing low to $133 high. However, the $125 support area acted as a strong hurdle for sellers. It also represents the 61.8% Fib retracement level of the last wave from the $120 swing low to $133 high.

It seems like there is a major declining channel is in place with resistance at $132 on the 4-hours chart of the BCH/USD pair. A clear break above the channel resistance and $133 is needed for buyers to gain traction. The next key resistance is near the $138 level, which was a strong support earlier. If buyers push the price above $138, the next stop could be near the $145 level.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, bitcoin cash price recovered nicely from $120, but it won’t be easy for buyers to clear the $132-134 resistance zone. Therefore, there are chances of a downside reaction towards the $125 or $124 support before the price could climb higher once again in the near term.

Technical indicators

4 hours MACD – The MACD for BCH/USD is showing positive signs and it could gain strength in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is about to move above the 50 level, with a bullish angle.

Key Support Levels – $125 and $120.

Key Resistance Levels – $133 and $138.

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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