Bitcoin cash price found support above $250.00 after a strong downside correction. BCH recovered recently and broke the key $280.00 and $294.00 resistance levels.
- Bitcoin cash price is trading with a positive angle above the $280.00 support.
- BCH broke a major bearish trend line with resistance at $292.00 on the 2-hours chart.
- The price even spiked above the $300.00 level before retreating from highs.
Bitcoin Cash Price Analysis (BCH to USD)
This past week, we saw a strong downside correction in bitcoin cash price below the $300.00 and $280.00 support levels. BCH/USD even broke the $260.00 level and traded close to the $250.00 support area, where buyers emerged.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair traded as low as $254.33 before the price started a fresh upward move. There was a convincing rebounded above the $274.00 resistance and the 25 simple moving average (2-hours).
The price surpassed the 23.6% Fib retracement level of the downward move from the $353.32 high to $254.33 low. Moreover, the price climbed above a major bearish trend line with resistance at $292.00 on the same chart.
There was even a break above the $300.00 level and the 50% Fib retracement level of the downward move from the $353.32 high to $254.33 low. However, the price failed to hold gains above the $300.00 level and recently corrected below the $298.00 level.
On the downside, there are many supports near the $294.00 and $290.00 levels. There is also a connecting bullish trend line formed with support at $288.50.
Therefore, if there is a downside correction in bitcoin cash, the price is likely to find support near $290.00. On the upside, a successful close above $300.00 and $308.00 is likely to open the doors for more upsides towards the $315.00 and $330.00 levels.
Overall, the market sentiment improved lately since BTC, bitcoin cash, Ethereum, ripple, cardano, tron, EOS and other major cryptocurrencies managed to rebound between 2-5%. In the short term, there could be a minor dip in BCH below $295.00, but it is likely to bounce back above $300.00.
The market data is provided by TradingView, Coinbase.