Bitcoin Cash Reaches Crucial Juncture: Here’s Why It Could Restart Decline

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

Bitcoin cash price trading near $225: Source:

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.

Technical indicators

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.

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