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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Cash Trading Near Inflection Point, 100 SMA Could Trigger New Rally

Aayush Jindal
Aayush Jindal
4 years ago
2 mins read
Bitcoin Cash

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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

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.

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Aayush Jindal
Aayush Jindal

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.

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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.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
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