Bitcoin cash price started a downside correction and tested USD 230 against the US dollar. BCH could target another rally at the $280 and $300 levels.
- Bitcoin Cash price is consolidating above the $230 level against the US Dollar.
- The price is trading below $255 and the 100 simple moving average (4 hours).
- There was a break above a major bearish trendline with resistance near USD 242 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to accelerate higher as it clears $255 and $265.
Bitcoin Cash Price is preparing for the next step
After a strong rally, Bitcoin Cash price faced sellers near the USD 300 zone. BCH traded as low as $294 and started a downside correction, like Bitcoin and Ethereum. There was a move below the $280 pivot level.
The price even dropped below $255 before the bulls appeared near $230. A low is formed near $232 and the price is now slowly moving up. There was a break above a key bearish trendline with resistance near USD 242 on the 4-hour chart of the BCH/USD pair.
The pair cleared the 23.6% Fib retracement level of the downward move from the $294 high to the $232 low. Bitcoin Cash is now trading below $265 and the 100 simple moving average (4 hours).
Immediate resistance is near the $255 level. The next major resistance is near $265 or the 100 simple moving average (4 hours). It is close to the 50% Fib retracement level of the downward move from $294 high to $232 low.
Source: BCH/USD at TradingView.com
Any further gains could lead the price towards the $280 and $285 resistance levels in the near term. The next big hurdle is near the $300 level.
Dips supported in BCH?
If Bitcoin Cash price fails to clear the $255 resistance, it could start a fresh decline. The first support on the downside is near the $240 level.
The next major support is near the $232 level, where the bulls are likely to emerge. If the price fails to stay above the $232 support, the price could test the $220 support. Any further losses could lead the price towards the $200 handle in the near term.
Technical indicators
4-Hour MACD – The MACD for BCH/USD is gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently above the 50 level.
Main Support Levels – $240 and $232.
Main resistance levels – $255 and $265.