Bitcoin cash price started a major drop from the $350.00 resistance area. BCH broke the $255.00 support, but it is likely to find a strong buying interest near $210.00 or $200.00.
Bitcoin Cash Price Analysis (BCH to USD)
In one of the previous analysis with the daily chart, we discussed the chances of bitcoin cash surging towards the $350.00 resistance area. BCH/USD did climb higher and tested the key technical resistance near $350.00, where sellers appeared.
Click to Enlarge Chart
Looking at the daily chart of BCH/USD, the pair traded as high as $352.92 and later started a downside correction. There was a break below the key $300.00 and $280.00 support levels.
Besides, the price broke the 50% Fib retracement level of the last major wave from the $150.74 low to $352.92 high. Recently, there was a strong decline in bitcoin price, sparking more downsides in bitcoin cash below the main $255.00 support area.
The price is now trading well below $255.00 and the 25-day simple moving average. An immediate support is near $227.00 and the 61.8% Fib retracement level of the last major wave from the $150.74 low to $352.92 high.
More importantly, there is a connecting bullish trend line in place with support near $215.00 on the same chart. The previous resistance zone is at $213.00, which is likely to act as a strong buy zone.
Therefore, if there is an extended decline below $227.00, the price is likely to find a strong buying interest near the $210.00-215.00 support zone. On the upside, the previous support area near the $255.00 level may now act as a resistance.
To start a fresh upward move, bitcoin cash price must move back above the $255.00 level and a key bearish trend line with resistance at $280.00 in the coming days.
The market data is provided by TradingView, Coinbase.
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