Bitcoin Cash Analysis: Risk of Downside Thrust Below $230

By Live Bitcoin News July 28, 2023 In Bitcoin, Bitcoin Cash
  • Bitcoin cash price started a fresh decline below the $255 zone against the US Dollar.
  • The price is now trading below the $250 zone and the 55 simple moving average (4 hours).
  • There is a connecting bearish trend line forming with resistance near $248 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair could continue to move down if it stays below the $254 resistance zone.

Bitcoin cash price is declining below the $250 zone against the US Dollar, similar to Bitcoin. BCH/USD could extend losses if there is a close below $230.

Bitcoin Cash Price Analysis

Bitcoin cash price remained in a bearish zone below the $285 and $280 resistance levels. BCH traded below the $265 support level to move further into a bearish zone.

There was a clear move below the $255 and $250 support levels. The pair even spiked below the $235 level. A low is formed near $231.62 and the price is now consolidating losses. It attempted a move above the 23.6% Fib retracement level of the downward move from the $295.00 swing high to the $231.62 low.

However, the bears seem to be active near $254 and $255. BCH is now trading below the $250 zone and the 55 simple moving average (4 hours). There is also a connecting bearish trend line forming with resistance near $248 on the 4-hour chart of the BCH/USD pair.

The next key resistance is near $264 and the 50% Fib retracement level of the downward move from the $295.00 swing high to the $231.62 low. Any more gains above $115 could set the pace for a move toward the $285 level.

If there is a move above the $285 resistance, the price could rise toward the $295 zone. If not, the price might continue lower below $235. Immediate support on the downside is near the $230 zone. The next major support is near the $225 level, below which the bears might aim for $212.

Looking at the chart, Bitcoin cash price is now trading below the $250 zone and the 55 simple moving average (4 hours). Overall, the price could continue to move down if it stays below the $254 resistance zone.

Technical indicators

4 hours MACD – The MACD for BCH/USD is losing pace in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is above the 50 level.

Key Support Levels – $230 and $225.

Key Resistance Levels – $254 and $264.

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