Bitcoin cash price topped near the $350.00 level and declined recently. Bitcoin (BTC) dived to $5,000 recently, dragging BCH below the $300.00 and $280.00 support levels. Going forward, can buyers protect the $250.00 support?
- Bitcoin cash price failed near a major technical resistance at $350.00-354.00.
- BCH traded below a crucial contracting triangle with support at $300.00 on the 2-hours chart.
- The price declined sharply and tested the $250.00 support, where buyers emerged.
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Bitcoin Cash Price Analysis (BCH to USD)
Earlier this month, we saw a sharp rise in bitcoin cash price above the $300.00 resistance against the US Dollar. BCH/USD even broke the $320.00 level and tested the main technical resistance at $350.00-354.00, where sellers emerged.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair started a sharp downside correction below the $320.00 and $300.00 levels. There was a break below the $295.00 support as well along with the 25 simple moving average (2-hours).
The price even broke the 23.6% Fib retracement level of the last wave from the $167.63 low to $354.74 high. More importantly, there was a break below a crucial contracting triangle with support at $300.00 on the same chart.
It opened the doors for more losses and the recent decline in bitcoin price below $5,100 dragged altcoins such as Ethereum, ripple, litecoin, cardano, BNB, EOS and others. Bitcoin cash is down more than 10% and it even broke the $280.00 support.
It tested the $250.00 support and the 50% Fib retracement level of the last wave from the $167.63 low to $354.74 high, where bulls emerged. The price is currently consolidating losses and it seems like it could recover above the $270.00 level in the near term.
However, the previous support near $290.00, 300.00, and the 25 simple moving average (2-hours) are likely to act as strong resistances for bulls. Therefore, there is a risk of downside continuation below the $250.00 support. The next major support is at $239.00 (the 61.8% Fib level), where there could be a strong buying interest and the price is likely to bounce back.
The market data is provided by TradingView, Coinbase.