Bitcoin Cash Price Holds Support
The price of Bitcoin Cash (BCH) has been showing positive signs above the $220 level against the US Dollar. It is currently trading above $220 and the 100 simple moving average (4 hours). However, there was a break below a key bullish trend line with support near $238 on the 4-hour chart of the BCH/USD pair.
Downside Break in BCH?
In the past few days, BCH experienced a decline from the $255 resistance zone, falling below the $240 support. This caused it to enter a short-term bearish zone, similar to Bitcoin and Ethereum. The price also dropped below the 50% Fibonacci retracement level of the upward move from the $203 swing low to the $255 high.
Despite these declines, the bulls were able to maintain support above $220. The price found support near the 61.8% Fibonacci retracement level of the upward move from the $203 swing low to the $255 high. Currently, BCH is trading above $220 and its 100 simple moving average (4 hours).
Potential for Fresh Increase
If BCH can clear the immediate resistance near the $236 level, it may face further resistance near $244. A successful break above these levels could lead to additional gains, potentially pushing the price towards the $250 resistance zone.
The next major hurdle for BCH is near the $262 level. If it surpasses this level, it could start a decent increase towards either the $280 level or even reach as high as $288 in the coming days.
Downside Risk
If BCH fails to clear the resistance at $244, it may experience a fresh decline. In this case, initial support on the downside is expected near the $225 level. The next major support level is near $220, where the bulls are likely to appear. However, if the price falls below $220, it could test the $212 support. Further losses may lead to a drop towards the $200 zone in the near term.
Technical Indicators
The 4-hour MACD for BCH/USD is losing pace in the bullish zone, indicating a potential shift in momentum. Additionally, the 4-hour RSI (Relative Strength Index) is currently below the 50 level.
Hot Take: Bitcoin Cash Holds Steady Amidst Volatility
Despite recent declines, Bitcoin Cash has managed to hold support above key levels and remains in a positive position above $220. The resistance levels at $236 and $244 will be crucial to watch for any potential breakout or reversal. If BCH can overcome these hurdles, it may pave the way for further gains towards the $250 and $262 levels. However, there is a downside risk if BCH fails to clear the resistance at $244, which could lead to a fresh decline towards support levels at $225 and $220. Traders should closely monitor these levels and technical indicators for potential trading opportunities.
Source: BCH/USD on TradingView.com
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