Bitcoin Cash Analysis: Recovery Could Be Capped Near $242

• Bitcoin cash price started a fresh decline below the $240 zone against the US Dollar.
• The price is now trading below the $235 zone and the 55 simple moving average (4 hours).
• There was a break below a key rising channel with support near $238 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
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• The pair could start a fresh decline if it stays below the $242 resistance zone.

Bitcoin cash price is struggling below the $242 zone against the US Dollar, like Bitcoin. BCH/USD could restart its decline if it fails near $234 or $242.

Bitcoin Cash Price Analysis

Bitcoin cash price remained in a bearish zone below the $255 and $260 resistance levels. BCH traded below the $245 support level to move again into a bearish zone.

There was a clear move below the $242 zone. Besides, there was a break below a key rising channel with support near $238 on the 4-hour chart of the BCH/USD pair. The price even tested the $222 support. A low is formed near the $223.80 level and the price is now consolidating losses.

BCH is now trading below the $235 zone and the 55 simple moving average (4 hours). It is also just above the 23.6% Fib retracement level of the downward move from the $255 swing high to the $223 low. Immediate resistance is near the $235 level.

The next key resistance is near the $242 zone. It is close to the 61.8% Fib retracement level of the downward move from the $255 swing high to the $223 low.

Any more gains above $242 could set the pace for a move toward the $255 level. If there is a move above the $255 resistance, the price could rise toward the $265 zone.

If not, the price might continue lower below $225. Immediate support on the downside is near the $222 zone. The next major support is near the $215 level, below which the bears might aim for $200 or even $195.

Looking at the chart, Bitcoin cash price is now trading below the $235 zone and the 55 simple moving average (4 hours). Overall, the price could start a fresh decline if it stays below the $242 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 below the 50 level.

Key Support Levels – $225 and $222.

Key Resistance Levels – $235 and $242.

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