Bitcoin Cash Price (BCH) Could Face Hurdles Near $220
After a strong decline, bitcoin cash price found support near $198.00-$200.00. BCH to USD is currently recovering, but it might face hurdles near the $220.00 area.
Key Takeaways: BCH/USD
- Bitcoin cash price is rebounding after a sharp decline towards the $200.00 area against the US Dollar.
- BCH/USD is likely to face resistance near $220.00 and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Bitcoin is trading below $7,500 and Ethereum price might struggle to recover above $167.00.
Bitcoin Cash Price Analysis
Recently, there was a sharp decline in bitcoin cash below the $220.00 and $212.00 support levels. As a result, the price even declined below $206.00 and tested the $198.00-$200.00 support area.
Looking at the 2-hours chart, bitcoin cash traded as low as $197.78 and settled well below the 50 simple moving average (2-hours, purple). The price is currently correcting higher above the $202.00 and $206.00 levels.
BCH traded above the 23.6% Fib retracement level of the slide from $236.44 to $197.78. At the moment, the price is trading close to the $212.00 and $215.00 resistance levels. However, the main resistance is near $220.00 and a bearish trend line on the same chart.
Moreover, the 50% Fib retracement level of the slide from $236.44 to $197.78 is near the $217.10 level to act as a strong resistance. More importantly, the 50 simple moving average (2-hours, purple) is close to $221.50 to stop the recovery.
Therefore, a successful break above the $220.00 resistance is needed for a fresh increase in the near term. Conversely, if bitcoin cash price declines again, it could find support near the $206.00 level.
The main supports are near $200.00 and $198.00, below which there is a risk of another sharp decline. The next key support is near the $185.00 area. Overall, BCH price might correct higher towards the $220.00 zone, where the bulls are likely to face a strong selling interest. Only a close above $220.00 is likely to decrease selling pressure in the coming days.