The Bitcoin Cash price has the key support at USD 220 against the US Dollar. BCH seems to be aiming for another surge unless there is a move below $220.
- Bitcoin Cash price is showing positive signs above the $220 level against the US dollar.
- The price is trading above $220 and the 100 simple moving average (4 hours).
- There was a break below a key bullish trendline with support around $238 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
- The pair could start a new rise unless there is a move below $220.
Bitcoin Cash Price Holds Support
In recent days, Bitcoin Cash price saw a steady decline against the USD 255 resistance zone. BCH fell below the USD 240 support and entered a short-term bearish zone like Bitcoin and Ethereum.
The price fell below the 50% Fib retracement level of the upward move from the $203 swing low to the $255 high. Additionally, there was a break below a key bullish trendline with support around $238 on the 4-hour chart of the BCH/USD pair.
However, the bulls were active above the USD 220 support. The price found support near the 61.8% Fib retracement level of the upward move from the $203 swing low to the $255 high.
Bitcoin Cash is now trading above $220 and the 100 simple moving average (4 hours). The immediate resistance is near the $236 level. The next major resistance is near $244. Any further gains could lead the price towards the USD 250 resistance zone.
Source: BCH/USD on TradingView.com
The next major hurdle is near the $262 level, above which BCH could start a decent rise towards the $280 level or $288 in the coming days.
Disadvantage Break in BCH?
If the Bitcoin Cash price fails to clear the USD 244 resistance, it could trigger another decline. The initial downside support is near the USD 225 level.
The next major support is around the $220 level, where the bulls are likely to emerge. If the price fails to hold above the $220 support, the price could test the $212 support. Any further losses could push the price towards the $200 zone in the short term.
Technical indicators
4-hour MACD – The MACD for BCH/USD is losing pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently below the 50 level.
Key support levels – USD 225 and USD 220.
Key resistance levels – $236 and $244.
