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Bitcoin cash price started a decline and tested $230 against the US Dollar. BCH may aim a fresh rally towards the $280 and $300 levels.
- Bitcoin cash price is consolidating above the $230 level against the US Dollar.
- The price is trading below $255 and the 100 simple moving average (4-hours).
- There was a break above a key bearish trend line with resistance near $242 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- If the pair overcomes $255 and $265, there is a possibility of an upside move.
bitcoin cash price prepares for next move
After a strong rally, bitcoin cash price faced sellers near the $300 area. BCH traded to a high of $294 and started a downside correction like bitcoin and Ethereum. There was a move below the pivot level of $280.
The price even declined below $255 before the bulls recovered near $230. There was a bottom level near $232 and the price is now correcting slowly upwards. There was a break above a key bearish trend line with resistance near $242 on the 4-hours chart of the BCH/USD pair.
The pair cleared the 23.6% Fibonacci retracement level of the decline from the $294 high to $232 low. Bitcoin cash is now trading below $265 and the 100 simple moving average (4-hours).
An immediate resistance is near the $255 level. The next major resistance is near the $265 or 100 simple moving average (4-hours). It is close to the 50% Fibonacci retracement level of the downside move from the $294 high to $232 low.
Source: BCH/USD on Tradingview.com
Any further gains could take the price towards the $280 and $285 resistance levels in the near term. The next major hurdle is near the $300 level.
Dips in BCH supported?
If bitcoin cash price fails to clear the $255 resistance, it could start a fresh decline. On the downside, an initial support is near the $240 level.
The next major support is near the $232 level, where the bulls are likely to appear. If the price fails to stay above the $232 support, the price could test the $220 support. Any further losses could lead the price towards the $200 level in the near term.
technical indicators
4-hours MACD – The MACD for BCH/USD is gaining momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently well above the 50 level.
Key Support Levels – $240 and $232.
Major resistance levels – $255 and $265.
