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Bitcoin cash price is recovering from the $225 support zone against the US Dollar. BCH is slowly gaining traction, but it is facing a strong resistance near the $240 and $242 levels.
- Bitcoin cash price is slowly correcting higher above $235 against the US Dollar.
- The price is likely to face a crucial hurdle near the $240 resistance zone.
- There is a key bearish trend line forming with resistance near $242 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair must clear the $242 resistance zone to start a decent recovery wave in the near term.
Bitcoin Cash Price is Facing a Major Hurdle
In the past few days, bitcoin cash price consolidated in a range above the $224 and $225 support levels. A swing low was formed near $224 before the price started a fresh increase.
There was a break above the $230 resistance zone. The bulls were able to push the price above the 23.6% Fib retracement level of the downward move from the $260 swing high to $224 low.
However, bitcoin cash price is currently facing a crucial hurdle near the $240 resistance zone. There is also a key bearish trend line forming with resistance near $242 on the 4-hours chart of the BCH/USD pair.
The trend line coincides with the 50% Fib retracement level of the downward move from the $260 swing high to $224 low. The 100 simple moving average (4-hours) is also close to the trend line resistance and $240 to prevent an upside break.
Bitcoin cash price testing $240: Source: TradingView.com
If the bulls succeed in clearing the $242 resistance, the price is likely to accelerate higher. An immediate resistance is near the $246 level, followed by $250. A successful close above the $250 level will most likely open the doors for a larger upward move in the coming sessions.
Fresh Decline in BCH?
If bitcoin cash price fails to break the trend line resistance, $240, and the 100 simple moving average (4-hours), there is a risk of a fresh decline.
An initial support is near the $235 level, followed by $230. The main support is now forming near the $225 level, below which the bears are likely to aim $205 or $200.
Technical indicators
Hourly MACD – The MACD for BCH/USD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well above the 50 level, with bullish signs.
Key Support Levels – $230 and $225.
Key Resistance Levels – $242 and $250.
