- Bitcoin cash is eyeing a fresh increase above the $242 resistance against the US Dollar.
- The price is now trading below the $245 zone and the 55 simple moving average (4 hours).
- There is a key contracting triangle forming with resistance near $238 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
- The pair must clear $238 and $242 to start a fresh increase in the near term.
Bitcoin cash price is consolidating gains above $230 against the US Dollar, unlike Bitcoin. BCH/USD could start a fresh surge if it clears the $242 level.
Bitcoin Cash Price Analysis
Bitcoin cash price started a downside correction after it failed to clear the $262 zone. BCH formed a high near $262.96 before there was a bearish move.
The price declined below the $255 and $230 levels. However, the bulls are protecting more losses below the $210 support zone. A low was formed near $212.3 and the price is now attempting a fresh increase. There was a move above the $225 level.
The price climbed above the 23.6% Fib retracement level of the downward move from the $262.96 swing high to the $212.31 low. Bitcoin cash is now trading below the $240 zone and the 55 simple moving average (4 hours).
On the upside, the price is facing resistance near the $238 level. There is also a key contracting triangle forming with resistance near $238 on the 4-hour chart of the BCH/USD pair.
The next major resistance is near $242 or the 61.8% Fib retracement level of the downward move from the $262.96 swing high to the $212.31 low, above which the price may perhaps start a strong increase. The next major resistance is near the $256 level. Any more gains above $256 could set the pace for a move toward the $265 level or even $275.
If not, the price might start another decline. Immediate support on the downside is near the $232 level. The first major support sits near the $220 level. The next major support is near $210, below which the bears might aim for $202.
Looking at the chart, Bitcoin Cash’s price is now trading below the $240 zone and the 55 simple moving average (4 hours). Overall, the price must clear $238 and $242 to start a fresh increase in the near term.
Technical indicators
4 hours MACD – The MACD for BCH/USD is losing pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is below the 50 level.
Key Support Levels – $232 and $220.
Key Resistance Levels – $238 and $242.