Bitcoin Cash Reaches Crucial Juncture: Here’s Why It Could Restart Decline
Bitcoin cash price started an upside correction from the $205 support against the US Dollar. BCH is now facing a strong resistance near the $225 and $230 levels.
- Bitcoin cash price is currently correcting higher from the $205 swing low against the US Dollar.
- The price is trading above $220, but the bulls are facing hurdles near $225 and $228.
- There is a crucial bearish trend line forming with resistance near $230 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair must clear the $230 resistance zone to start a fresh increase in the near term.
Bitcoin Cash Price Could Reverse Gains
This past week, bitcoin cash price broke the main $225 support level to start a sharp decline. BCH even traded below the $215 support level and settled well below the 100 simple moving average (4-hours).
It tested the $205 support and remained well bid above the $200 handle. As a result, the price started an upside correction above the $215 and $220 levels. It is now trading near a major resistance at $225 (the recent breakdown zone).
The 50% Fib retracement level of the downward move from the $245 swing high to $205 low is also acting as a resistance near $225. More importantly, there is a crucial bearish trend line forming with resistance near $230 on the 4-hours chart of the BCH/USD pair.
Bitcoin cash price trading near $225: Source: TradingView.com
The trend line is close to the 100 simple moving average (4-hours) and the 61.8% Fib retracement level of the downward move from the $245 swing high to $205 low. Therefore, the bulls need to clear the $225 and $230 resistance levels to start a steady increase.
If they succeed and the price settles above $230, there could be a decent upward move towards the $245 resistance level in the coming sessions.
Fresh Bearish Wave in BCH?
If bitcoin cash price fails to break the trend line hurdle, $230, and the 100 simple moving average (4-hours), there is a risk of a fresh bearish wave.
An initial support is near the $220 level, below which the price could restart its decline. The main support is near the $205 and $200 levels, where the bulls are likely to take a stand.
Technical indicators
Hourly MACD – The MACD for BCH/USD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently close to the 50 level, with a bearish angle.
Key Support Levels – $220 and $205.
Key Resistance Levels – $225 and $230.
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Aayush Jindal, Khareem Sudlow
