- Bitcoin cash price is down close to 50% from well above the $250 level against the US Dollar.
- The price is currently recovering from the $140 and $135 support levels.
- There is a key bearish trend line forming with resistance near $208 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could start a decent recovery if it climbs above the $180 resistance area.
Bitcoin cash price nosedived below the $200 support area against the US Dollar. BCH/USD even tested the $140 support area and it is currently correcting higher.
Bitcoin Cash Price Analysis
In the past 4-5 sessions, bitcoin cash price saw a massive decline from well above the $250 level against the US Dollar. BCH price broke many key supports near the $200 level and the 55 simple moving average (4-hours) to enter a bearish zone.
The decline was such that the price even tumbled below $175 and $160. Finally, it declined below the $150 level and it tested the $140 support zone. A low is formed near the $134 level and the price is currently correcting higher.
It is trading above the $150 level and testing the 23.6% Fib retracement level of the recent decline from the $278 swing high to $134 low. On the upside, an initial resistance is near the $180 level.
There is also a contracting triangle forming with resistance near $185 on the 4-hours chart of the BCH/USD pair. If there is an upside break above the triangle resistance, the price could test the $200 resistance area.
Moreover, there is a key bearish trend line forming with resistance near $208 on the same chart. The 50% Fib retracement level of the recent decline from the $278 swing high to $134 low is also near the $205 level.
Therefore, a clear break above the $185 and $200 resistance levels is must for a strong uptrend formation. The next major hurdles are seen near the $220 and $250 levels.
Conversely, the price could fail to recover above the $180 and $185 resistance levels. In the mentioned case, there is a risk of another downward move towards the $140 support zone.
Looking at the chart, bitcoin cash price is showing a few recovery signs above $150 and $160. Having said that, the bulls need to overcome the $185 hurdle to start a decent upward move.
Technical indicators
4 hours MACD – The MACD for BCH/USD is currently losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now recovering from the 20 level.
Key Support Levels – $150 and $140.
Key Resistance Levels – $185 and $200.
