Bitcoin cash price declined sharply today below the $300.00 support level. However, BCH is now approaching crucial supports and it could bounce back in the near term.
- Bitcoin cash price declined sharply from the $312.11 swing high and broke $300.00.
- BCH broke a connecting bullish trend line with support at $294.00 on the 2-hours chart.
- The price is likely to find a strong buying interest near the $272.00 and $260.00 supports.
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Bitcoin Cash Price Analysis (BCH to USD)
Today, bitcoin price started a corrective decrease below the $5,500 support level. It increased bearish pressure on altcoins, resulting in a significant decline in bitcoin cash price below the $304.00, $300.00 and $296.00 support levels.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair traded as high as $312.11 and recently declined sharply below the $300.00 support plus the 25 simple moving average (2-hours).
Other altcoins also fell significantly between 5-12%, including Ethereum, ripple, litecoin, cardano, EOS, stellar, ICX, BNB and TRX. BCH declined more than 5% and broke the $296.00 and $288.00 support levels.
There was also a break below a connecting bullish trend line with support at $294.00 on the same chart. The price even broke the last swing low near $279.86 and tested the next key support at $272.00. It represents the 1.236 Fib extension level of the last wave from the $279.86 low to $312.11 high.
There was a decent buying interest near the $272.00 level and the price is currently consolidating losses. On the upside, an initial resistance is near the $285.00 and $287.00 levels. To move back in a positive zone, the price must clear the $300.00 resistance, two bearish trend lines on the same chart, and the 25 simple moving average (2-hours).
If the bulls struggle to push the price above the 25 simple moving average (2-hours) or the $287.00 resistance, there could be an extended drop in bitcoin cash. The next major support is near $260.00 and the 1.618 Fib extension level of the last wave from the $279.86 low to $312.11 high. As long as BCH is above $260.00 and $272.00, it is likely to bounce back in the near term.