Bitcoin Cash Price Won’t Go Down Quietly – Risk of Bounce Grows

Aayush Jindal

1 year ago

2 mins read

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Bitcoin Cash price is holding the key $220 support against the US Dollar. BCH seems to be aiming for a fresh increase unless there is a move below $220.

Bitcoin cash price is showing positive signs above the $220 level against the US Dollar.
The price is trading above $220 and the 100 simple moving average (4 hours).
There was a break below a key bullish trend line with support near $238 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
The pair could start a fresh increase unless there is a move below $220.

Bitcoin Cash Price Holds Support

In the past few days, Bitcoin Cash price saw a steady decline from the $255 resistance zone. BCH declined below the $240 support to enter a short-term bearish zone, like Bitcoin and Ethereum.

The price declined below the 50% Fib retracement level of the upward move from the $203 swing low to the $255 high. Besides, there was a break below a key bullish trend line with support near $238 on the 4-hour chart of the BCH/USD pair.

However, the bulls were active above the $220 support. The price found support near the 61.8% Fib retracement level of the upward move from the $203 swing low to the $255 high.

Bitcoin Cash is now trading above $220 and the 100 simple moving average (4 hours). Immediate resistance is near the $236 level. The next major resistance is near $244. Any further gains could lead the price toward the $250 resistance zone.

Source: BCH/USD on TradingView.com

The next major hurdle is near the $262 level, above which BCH might start a decent increase toward the $280 level or $288 in the coming days.

Downside Break in BCH?

If Bitcoin Cash price fails to clear the $244 resistance, it could start a fresh decline. Initial support on the downside is near the $225 level.

The next major support is near the $220 level, where the bulls are likely to appear. If the price fails to stay above the $220 support, the price could test the $212 support. Any further losses could lead the price toward the $200 zone in the near term.

Technical indicators

4-hour MACD – The MACD for BCH/USD is losing pace in the bullish zone.

4-hour RSI (Relative Strength Index) – The RSI is currently below the 50 level.

Key Support Levels – $225 and $220.

Key Resistance Levels – $236 and $244.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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