Bitcoin cash price corrected lower from the $270 resistance zone. BCH seems to be preparing for the next crucial break either above $260 or towards the $230 support.
- Bitcoin cash price is trading in a range above the $250 support zone against the US Dollar.
- The price must break the $260 resistance zone to start a fresh increase in the near term.
- There is a key contracting triangle forming with resistance near $255 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair could either rally sharply above $260 or start a fresh decline below $250.
Bitcoin Cash Price Approaching Next Key Break
After a strong increase above $250, bitcoin cash price found sellers near the $268 level. BCH price formed a new monthly high near $268 and recently started a downside correction.
There was a break below the $265 support zone and the price even spiked below $250. A low is formed near the $246 level and the price is currently well above the 100 simple moving average (4-hours).
The last swing high was near $263 and the recent low was near $246. Bitcoin cash is currently trading in a range (similar to bitcoin) above the $250 support. It tested the 50% Fib retracement level of the recent decline from the $263 high to $246 low.
More importantly, there is a key contracting triangle forming with resistance near $255 on the 4-hours chart of the BCH/USD pair. The triangle resistance is close to the 61.8% Fib retracement level of the recent decline from the $263 high to $246 low.
Therefore, an upside break above the triangle resistance and the $260 level could open the doors for a fresh increase. The next key hurdle is near the $268 and $270 levels, above which the bulls are likely to aim a test of the $300 handle in the near term.
Downside Break in BCH
If bitcoin cash price breaks the triangle support, it could even struggle to stay above the $246 swing low. The next major support is near the $244 level or the 100 simple moving average (4-hours).
Any further losses could start a steady decline towards the $230 support. Overall, the price could either rally sharply above $260 or start a fresh decline below $250.
Technical indicators
Hourly MACD – The MACD for BCH/USD is struggling to gain pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently just below the 50 level.
Key Support Levels – $250 and $246.
Key Resistance Levels – $260 and $270.
