Bitcoin Cash Price Analysis

Bitcoin Cash (BCH) Near Make-or-Break Levels

Bitcoin Cash Price Analysis BCH Chart

Bitcoin cash price started a downside correction after trading above $235 against the US Dollar. BCH/USD traded below $200 and it is currently consolidating near $150.

Key Talking Points

  • Bitcoin cash price declined recently and broke the $200 and $175 supports against the US Dollar.
  • BCH is forming a breakout pattern with resistance at $162 on the 4-hours chart (data feed from Bitstamp).
  • The price may soon make the next move either above $165 or below $140 in the near term.

Bitcoin Cash Price Analysis

After a monster rally above the $200 level, bitcoin cash price found sellers against the US dollar. BCH tested the $235-240 resistance zone and later started a downside correction. On the other hand, bitcoin, ripple, Ethereum, litecoin and EOS remained nicely supported.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, the price started a major decline from the $237 swing high. It broke the $200 and $175 support levels to move into a bearish zone. There was even a break below the $170 level and the 100 simple moving average (4-hours).

Moreover, the price declined below the 50% Fibonacci retracement level of the upward move from the $84 low to $237 high. Later, the decline was protected by the $140-142 support zone.

More importantly, the 61.8% Fibonacci retracement level of the upward move from the $84 low to $237 high acted as a support. The price is currently consolidating above the $142 and $150 support levels.

It seems like there a breakout pattern formed with resistance at $162 on the 4-hours chart. A break above the bearish trend line and $165 may push the price towards $175 and $190 in the near term.

On the downside, a break below the $150 and $142 support levels may clear the path for more declines in bitcoin cash price in the near term. The next major support for BCH below $142 is at $120. It represents the 76.4% Fibonacci retracement level of the upward move and the last swing area. Therefore, traders may wait for the next break to catch the next move either above $165 or below $142.

The market data is provided by TradingView.

Aayush Jindal
About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: [email protected]
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