Bitcoin Cash Analysis: Bulls Struggle To Protect This Key Support

• Bitcoin cash price started a downside correction from the $270 zone against the US Dollar.
• The price is now trading above the $240 zone and the 55 simple moving average (4 hours).
• There is a key contracting triangle forming with support at $242 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
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• The pair could continue to move down if it breaks the $242 and $240 support levels.

Bitcoin cash price is declining from the $270 zone against the US Dollar, like Bitcoin. BCH/USD must stay above $240 to start a fresh increase.

Bitcoin Cash Price Analysis

Bitcoin Cash price was able to gain pace for a move above the $245 and $250 resistance levels. BCH even traded above the $260 level before the bears appeared.

A high was formed near $269.96 before the price started a downside correction. There was a clear move below the $260 and $255 support levels. The pair traded below the 50% Fib retracement level of the upward move from the $224.00 swing low to the $269.96 high.

The bears even pushed the price below the $250 support. It is now trading above the $240 zone and the 55 simple moving average (4 hours). There is also a key contracting triangle forming with support at $242 on the 4-hour chart of the BCH/USD pair.

Immediate resistance is near the $250 level. The main resistance sits near the $260 level. Any more gains above $260 could set the pace for a move toward the $270 level. If there is a move above the $270 resistance, the price could rise toward the $288 zone.

If not, the price might continue lower below $245. Immediate support on the downside is near the $242 zone. The next major support is near the $240 level or the 61.8% Fib retracement level of the upward move from the $224.00 swing low to the $269.96 high, below which the bears might aim for $225. The next target for them may perhaps be near the $208 level.

Looking at the chart, Bitcoin Cash price is now trading above the $240 zone and the 55 simple moving average (4 hours). Overall, the price could continue to move down if it breaks the $242 and $240 support levels.

Technical indicators

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

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

Key Support Levels – $242 and $240.

Key Resistance Levels – $250 and $260.

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