Bitcoin Cash Analysis: Correcting Gains, Key Supports Nearby

Friday 30 October 2020, 5:04 PM AEST - 1 month ago

Bitcoin Cash Price

  • Bitcoin cash price rallied and gained pace above the $255 and $260 resistance levels against the US Dollar.
  • The price traded to a new monthly high at $280 before starting a downside correction below $270.
  • There is a key bullish trend line forming with support near $260 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
  • The pair is likely to retest the $255 support zone before it starts a fresh increase in the near term.

Bitcoin cash price remained in a bullish zone above $250 against the US Dollar. BCH/USD is currently correcting gains, but it is likely to find bids near $255 or $250.

Bitcoin Cash Price Analysis

This week, bitcoin cash price started a strong increase above the $255 resistance against the US Dollar. BCH price even gained pace above the $265 and $270 resistance levels.

Finally, the price broke the $275 level and traded to a new monthly high at $280. Recently, there was a downside correction below the $270 level and the 55 simple moving average (4-hours). It traded as low as $258 and it is currently stuck in a range.

There was a break above the $260 level, plus the 23.6% Fib retracement level of the recent decline from the $280 high to $258 low. However, the bulls seem to be facing a strong resistance near the $270 level.

The 50% Fib retracement level of the recent decline from the $280 high to $258 low is also near the $270 level to act as a resistance. A successful close above the $270 resistance is needed to start a fresh increase. The next major resistance is near the $280 level.

Conversely, there could be a downside break below the $262 and $260 support levels. There is also a key bullish trend line forming with support near $260 on the 4-hours chart of the BCH/USD pair.

The main support is near the $255 level, where the bulls are likely to take a strong stand. If there are more losses, the price could continue to move down below $250.

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