Bitcoin cash price recovered recently above $320.00 and $330.00. However, BCH is facing an uphill task and it could start a fresh decrease if it continues to struggle bear $335.00-340.00.
- Bitcoin cash is facing a strong resistance near the $333.00, $335.00 and $340.00 levels.
- A major bullish trend line is forming with support near $315.00 on the 2-hours chart.
- A downside break below the trend line might start a fresh drop below $300.00.
Bitcoin Cash Price Analysis (BCH to USD)
After a strong drop, bitcoin price found support near the $255.00 level and recently started an upside correction along with BTC, Ethereum and ripple. BCH price broke the key $300.00 resistance to start a short term upside correction.
Click to Enlarge Chart
Looking at the 2-hour chart of BCH/USD, the pair recovered slowly and steady above $280.00 and $300.00. It even broke the $320.00 resistance level and the 25 simple moving average (2-hours).
Finally, there was a break above $330.00, but the price struggled to gain momentum above $335.00. A swing high was formed near $344.32 and the price corrected lower.
It broke the $325.00 support plus the 50% Fib retracement level of the recent wave from the $296.75 low to $344.32 high. Moreover, there was a break below the $320.00 level plus the 25 simple moving average (2-hours).
However, the decline was protected by the $312.00 level and the 61.8% Fib retracement level of the recent drop from the $351.21 high to $256.79 low. Besides, there is a major bullish trend line forming with support near $315.00 on the same chart.
On the upside, there are many hurdles near the $333.00, $335.00 and $340.00 levels. A successful close $340.00 is needed for an upside acceleration in the coming sessions.
The next key resistance above $340.00 is near the $380.00 level. If the bulls continue to struggle below $340.00, there is a risk of a downside break below $315.00 and $310.00. In the mentioned bearish case, bitcoin cash price may even break the $296.00 swing low and test $280.00 level.
The market data is provided by TradingView, Coinbase.
eToro Risk Warning: 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
View original post