Bitcoin Cash Price (BCH) Holding Key Support But For How Long?
In the past few days, bitcoin cash price declined steadily below the $216.30 support. BCH to USD is currently trading above the $203.40 support, but it remains at a risk of more downsides.
Key Takeaways: BCH/USD
- Bitcoin cash price is trading in a bearish zone below $216.30 and $210.00 against the US Dollar.
- BCH/USD is facing a strong resistance near $210.00 and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Bitcoin is also declining and it is currently trading above the $7,000 support area.
Bitcoin Cash Price Analysis
This week, there was a fresh decrease in bitcoin cash price from the $216.30 support area. BCH price gained bearish momentum and broke a few key supports near the $210.00 level.
Looking at the 2-hours chart, bitcoin cash even settled below the $210.00 level and the 50 simple moving average (2-hours, purple). Finally, there was a break below the $206.50 support and the price tested the $203.40 support area.
A low is formed near $203.28 and the price is currently consolidating losses. It is trading near the 23.6% Fib retracement level of the recent decline from $215.84 to $203.28.
On the upside, there are many resistances, starting with the $209.00 level and the 50 simple moving average (2-hours, purple). The first key resistance is near the $210.00 level.
It seems like bitcoin cash is facing a strong resistance near $210.00 and a bearish trend line on the 2-hours chart. Besides, the 50% Fib retracement level of the recent decline from $215.84 to $203.28 is also near the $209.56 level.
Therefore, the price must climb back above $209.50 and $210.00 to start a decent recovery. The next major resistance is near the $216.30 area.
Conversely, bitcoin cash price could fail to recover above the $209.50 and $210.00 resistance levels. In the mentioned case, the price is likely to decline below the $203.40 support area. The next key support is near the $200.00 area, below which there is a risk of a 5-8% drop in the near term.