The Bitcoin Cash price has the key support at USD 205 against the US Dollar. BCH could start a new increase if it remains above the USD 205 and USD 200 support levels.
- Bitcoin Cash price started a new decline below the $230 level against the US dollar.
- The price is trading below $220 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance around $217 on the 4-hour chart of the BCH/USD pair (data feed from Kraken).
- The pair could start another rise unless there is a move below $200.
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 232 support and entered a short-term bearish zone like Bitcoin and Ethereum.
The bears managed to push the price below the $220 support. Finally, the price found support near the $205 zone (a multi-touch zone). A low has formed near USD 206.59 and the price is now consolidating losses. It appears that a major bearish trendline is forming with resistance around $217 on the 4-hour chart of the BCH/USD pair.
Bitcoin Cash is now trading below $220 and the 100 simple moving average (4 hours). Immediate resistance is near the $217 level and trendline. It is close to the 23.6% Fib retracement level of the downward move from the $255 swing high to the $206 low.
Source: BCH/USD on TradingView.com
The next major resistance is near $228 or the 100 simple moving average (4 hours). The next major resistance is near the $232 level. It is close to the 50% Fib retracement level of the downward move from the $255 swing high to the $206 low. Any further gains could lead the price towards the USD 250 resistance zone.
Disadvantage Break in BCH?
If the Bitcoin Cash price fails to clear the USD 217 resistance, it could continue to decline. The initial downside support is near the USD 205 level.
The next major support is around the $200 level, where the bulls are likely to emerge. If the price fails to hold above the $200 support, the price could test the $184 support. Any further losses could push the price towards the $162 zone in the short term.
Technical indicators
4-hour MACD – The MACD for BCH/USD is losing pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI is currently below the 50 level.
Key support levels – USD 205 and USD 200.
Key resistance levels – $217 and $232.