HomeAltcoin NewsBitcoin Cash Analysis: Breakdown Could Extend Below $200

Bitcoin Cash Analysis: Breakdown Could Extend Below $200

-

  • Bitcoin cash price started a major decline from well above the $260 support against the US Dollar.
  • The price is currently trading well below the $25 support and the 55 simple moving average (4-hours).
  • There was a break below a crucial bullish trend line with support near $275 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could correct higher in the short-term, but there is a risk of more losses below $200.

Bitcoin cash price is declining and it is trading in a bearish zone below $250 against the US Dollar. BCH/USD is showing bearish signs and the bears might even attempt a break below $200.

Bitcoin Cash Price Analysis

In the past few sessions, there was a sharp decline in bitcoin cash price from well above $260 against the US Dollar. BCH price even traded below the $250 support and the 55 simple moving average (4-hours).

The decline was such that the price broke the $220 support and traded close to the $200 handle. During the decline, there was a break below a crucial bullish trend line with support near $275 on the 4-hours chart of the BCH/USD pair.

A new weekly low is formed near $204 and the price is currently correcting higher. It recovered above the $215 level, but facing hurdles near the $226 level. It is close to the 23.6% Fib retracement level of the recent drop from the $297 high to $205 low.

The first major resistance is near the $240 level. The main resistance is now forming near the $250 level. It is close to the 50% Fib retracement level of the recent drop from the $297 high to $205 low.

If there is an upside correction, bitcoin cash might find it difficult to clear the $240 and $250 resistance levels. Conversely, the price may perhaps continue to move down below the $215 support. The next major support is near the $205 and $200 levels.

If there is a bearish close below the $200 support, there could be a massive drop towards the $180 support or even $165 in the coming days.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, bitcoin cash price is clearly trading in a bearish zone below $240 and $250. The price could correct higher in the short-term, but there is a risk of more losses below $200.

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 currently well below the 30 level.

Key Support Levels – $205 and $200.

Key Resistance Levels – $240 and $250.

FOLLOW US

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years 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 and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

Upcoming Events

Most Popular