Crypto

Bitcoin Cash Price Recovery Could Face Huge Barrier Near $250

Bitcoin cash price declined heavily and tested the $225 support zone. BCH is currently recovering, but it is likely to face a strong barrier near the $248 and $250 resistance levels.

  • Bitcoin cash price declined to a new monthly low at $225 against the US Dollar.
  • The price is currently correcting higher above the $230 resistance zone.
  • There is a major bearish trend line forming with resistance near $248 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
  • The pair is likely to struggle near the $246, $248 and $250 resistance levels in the near term.

Bitcoin Cash Price is Facing Hurdles

This month, bitcoin cash price topped near the $265 level and started a fresh decline. It broke the $250 support zone and the 100 simple moving average (4-hours) to move into a bearish zone.

The decline was such that BCH even broke the $230 level and tested the $225 support area. Recently, it started an upside correction (similar to bitcoin) above the $230 resistance. There was a break above the 23.6% Fib retracement level of the downward move from the $259 high to $225 low.

It seems like there is a declining channel forming with resistance near $238 on the 4-hours chart of the BCH/USD pair. If there is an upside break above the channel resistance at $238, the price could recover towards the $246 resistance zone.

Bitcoin Cash Price
Bitcoin Cash Price is recovering. Source: TradingView.com

An intermediate resistance is near $241 or the 50% Fib retracement level of the downward move from the $259 high to $225 low. The main resistance is near the $246, $248 and $250 levels.

There is also a major bearish trend line forming with resistance near $248 on the same chart. Therefore, bitcoin cash price must break the $248 and $250 resistance levels to move into a positive zone in the near term.

Fresh Decline in BCH?

If bitcoin cash price fails to continue higher above $240 and stays below the 100 simple moving average (4-hours), it could resume its decline. An initial support is near the $230 level.

The first major support is near the $225 level, below which the price might struggle to stay above the main $220 support level. In the mentioned case, the price might decline towards the $200 handle in the coming sessions.

Technical indicators

Hourly MACD – The MACD for BCH/USD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently just below the 50 level, with negative signs.

Key Support Levels – $230 and $225.

Key Resistance Levels – $241 and $248.

mm
James Donald
James Donald writes for the Crypto section of Select News 91. He is an economic expert with a special interest in the unregulated currency system. He believes that the future of the planet lies in the unregulated system and that cryptocurrency is only beginning its journey. Whether his prediction is true or not, his skills certainly show his ability to analyze trends and dissect policy decisions. His column talks about the various cryptocurrencies failing and succeeding in a market that is nowhere near saturation.

Leave a Reply

Your email address will not be published. Required fields are marked *