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Bitcoin Cash (BCH) Facing Uphill Task, Can $100 Hold?

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  • Bitcoin cash price recovered recently from $105, but struggled to break $120 against the US Dollar.
  • There is a crucial bearish trend line formed with resistance at $116 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair is likely to make the next move either above the $116-120 resistance or decline below $105.

Bitcoin cash price is struggling to gain momentum above $115-120 against the US Dollar. BCH is setting up for the next break either above $120 or below $105 in the near term.

Bitcoin Cash Price Analysis

There was a fresh decline recently in bitcoin, ripple, Ethereum, and bitcoin cash against the US Dollar. The BCH/USD pair traded towards the $105 level and later started an upside correction. The price moved above the $110 and $112 resistance levels. There was a break above the 23.6% Fib retracement level of the last decline from the $134 high to $105 swing low. Finally, there was a break above the $115 level, but the price struggled near the $120 resistance level.

More importantly, the price failed to break the 55 simple moving average (4-hours) near $119. Besides, there is a crucial bearish trend line formed with resistance at $116 on the 4-hours chart of the BCH/USD pair. The pair also failed to break the 50% Fib retracement level of the last decline from the $134 high to $105 swing low. As a result, there was a fresh decline below $116 and $115. The price is currently trading below $115 and it remains at a risk of more losses. If the price continues to move down, the price may revisit the $105 support. Any further declines could lead to a sharp decline below $102 or $100.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, bitcoin cash price likely to make the next move either above the $116-120 resistance or towards $100. A proper break above the $120 resistance may kick start a decent upward move towards $135.

Technical indicators

4-hours MACD – The MACD for BCH/USD is placed in the bearish zone.

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

Key Support Level – $105

Key Resistance Level – $120

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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