Bitcoin cash price started an upward correction due to the support of USD 205 against the US dollar. BCH is now facing strong resistance near the $ 225 and $ 230 levels.
- Bitcoin cash price is currently correcting higher than the $ 205 low against the US dollar.
- The price is over $ 220, but the bulls face hurdles near $ 225 and $ 228.
- On the 4-hour chart of the BCH / USD pair (Kraken data feed), a key bearish trendline is forming with resistance close to $ 230.
- The pair has to break the USD 230 resistance zone to start a new surge in the short term.
The Bitcoin cash price could reverse profits
Last week, Bitcoin cash price broke the main support level of $ 225 to start a sharp decline. BCH even traded below the $ 215 support level and was well below the simple moving average of 100 (4 hours).
It tested $ 205 support and stayed well above the $ 200 grip. As a result, the price started an upward correction above the levels of $ 215 and $ 220. It is now trading near a large resistance at $ 225 (the most recent breakdown zone).
The 50% fib retracement level of the downward move from the high of $ 245 to the low of $ 205 also acts as resistance near $ 225. More importantly, the BCH / USD pair's 4-hour chart has a key bearish trendline with resistance close to $ 230.
Bitcoin cash price trading near $225: Source: TradingView.com
The trendline is close to the simple moving average of 100 (4 hours) and the fib retracement level of 61.8% of the downward move from the high of $ 245 to the low of $ 205. As a result, the bulls have to overcome the $ 225 and $ 230 resistance levels to start a steady rise.
If they are successful and the price is above $ 230, there could be a decent upward move toward the $ 245 resistance level in upcoming sessions.
Fresh bearish wave in BCH?
If the Bitcoin cash price does not exceed the trend line hurdle of $ 230 and the simple moving average of 100 (4 hours), there is a risk of a renewed bearish wave.
Initial support is near the $ 220 level below which the price could resume its decline. The main support is near the $ 205 and $ 200 levels where the bulls are likely to take a stand.
Hourly MACD – The MACD for BCH / USD is slowly picking up speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH / USD is currently close to the 50 level with a declining angle.
Major support levels – $ 220 and $ 205.
Major resistance levels – $ 225 and $ 230.