Bitcoin Cash Price (BCH) Correcting lower But Dips Remain Attractive
In the past few days, there was a strong increase in bitcoin cash price above the $250.00 and $300.00 resistance levels. BCH to USD traded to a new 2020 high at $368.29 and recently started a downside correction.
Key Takeaways: BCH/USD
- Bitcoin cash price traded to a new high above $350.00 before it faced sellers against the US Dollar.
- BCH/USD is following a major bearish trendline with resistance near $330.00 on the 2-hours chart (data feed from Bitstamp).
- Bitcoin is currently consolidating gains after a solid rally towards the $8,900 area.
Bitcoin Cash Price Analysis
This week, there was a strong upward move in bitcoin cash price above the $250.00 pivot level. BCH price even surged above the $320.00 and $350.00 resistance levels.
Looking at the 2-hours chart, bitcoin cash settled nicely above the $300.00 level and the 50 simple moving average (2-hours, purple). Finally, the price climbed towards the $370.00 level and a new 2020 high was formed near the $368.29 high.
Recently, there was a downside correction below the $350.00 and $330.00 support levels. Moreover, there was a break below the 23.6% Fib retracement level of the last rally from $261.33 to $368.29.
At the moment, the price is trading near the $320.00 support area. Besides, the 50% Fib retracement level of the last rally from $261.33 to $368.29 is acting as a decent support.
The main support is near the $300.00 area and the 50 simple moving average (2-hours, purple). If there is a downside break below the $300.00 support and the 50 simple moving average (2-hours, purple), bitcoin cash price could move into a bearish zone.
Conversely, the price might start a fresh increase above the $325.00 and $330.00 levels. It seems like BCH price is following a major bearish trendline with resistance near $330.00 on the 2-hours chart.
A clear break above the $330.00 resistance area could push the price towards the $350.00 resistance area. Any further gains might lead bitcoin cash price towards the $375.00 and $380.00 levels in the near term.