- Bitcoin cash price started a downside correction from the $245 zone against the US Dollar.
- The price is now trading below the $240 zone and the 55 simple moving average (4 hours).
- There is a key declining channel or a bullish flag pattern forming with resistance near $240 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
- The pair could continue to move down if it breaks the $232 and $230 support levels.
Bitcoin cash price is declining from the $245 zone against the US Dollar, like Bitcoin. BCH/USD must stay above $230 to start a fresh increase.
Bitcoin Cash Price Analysis
Bitcoin Cash price was able to gain pace for a move above the $228 and $230 resistance levels. BCH even traded above the $240 level before the bears appeared.
A high was formed near $245.97 before the price started a downside correction. There was a clear move below the $242 and $240 support levels. The pair traded below the 23.6% Fib retracement level of the upward move from the $218.70 swing low to the $245.97 high.
The bears even pushed the price below the $235 support. It is now trading below the $240 zone and the 55 simple moving average (4 hours). Immediate resistance is near the $238 level.
The main resistance sits near the $240 level. There is also a key declining channel or a bullish flag pattern forming with resistance near $240 on the 4-hour chart of the BCH/USD pair. Any more gains above $240 could set the pace for a move toward the $245 level. If there is a move above the $245 resistance, the price could rise toward the $262 zone.
If not, the price might continue lower below $232 or the 50% Fib retracement level of the upward move from the $218.70 swing low to the $245.97 high. Immediate support on the downside is near the $230 zone. The next major support is near the $220 level, below which the bears might aim for $212. The next target for them may perhaps be near the $205 level.
Looking at the chart, Bitcoin Cash price is now trading below the $240 zone and the 55 simple moving average (4 hours). Overall, the price could continue to move down if it breaks the $232 and $230 support levels.
Technical indicators
4 hours MACD – The MACD for BCH/USD is losing pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now below the 50 level.
Key Support Levels – $232 and $230.
Key Resistance Levels – $240 and $245.