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.
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.