Bitcoin Cash Analysis: Risk of Fresh Drop to $105
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- Bitcoin cash price started a fresh decline below the $120 zone against the US Dollar.
- The price is now trading below the $118 zone and the 55 simple moving average (4 hours).
- There was a break below a key bullish trend line with support at $116.00 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
- The pair could continue to move down if it stays below the $116 resistance zone.
Bitcoin cash price is declining below the $118 zone against the US Dollar, similar to Bitcoin. BCH/USD could extend losses if there is a close below $112.
Bitcoin Cash Price Analysis
Bitcoin cash price struggled to gain pace for a move above the $120 and $122 resistance levels. BCH formed a high near $120.93 and started a fresh decline.
There was a clear move below the $118.00 and $116.00 support levels. The pair even declined below the $116 support. It tested the $112 zone. A low is formed near $112.89 and the price is now consolidating losses. It is now trading above the 23.6% Fib retracement level of the recent decline from the $120.93 swing high to the $112.89 low.
Besides, it is trading below the $118 zone and the 55 simple moving average (4 hours). Immediate resistance is near the $116.00 level and the 55 simple moving average (4 hours).
The 50% Fib retracement level of the recent decline from the $120.93 swing high to the $112.89 low is also near $116. The next key resistance is near $118. Any more gains above $116 and $118 could set the pace for a move toward the $120 level.
If there is a move above the $120 resistance, the price could rise toward the $128 zone. If not, the price might continue lower below $112. Immediate support on the downside is near the $110 zone. The next major support is near the $105 level, below which the bears might aim for $100.
Looking at the chart, Bitcoin cash price is now trading below the $118 zone and the 55 simple moving average (4 hours). Overall, the price could continue to move down if it stays below the $120 resistance zone.
4 hours MACD – The MACD for BCH/USD is losing pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is below the 50 level.
Key Support Levels – $112 and $110.
Key Resistance Levels – $116 and $118.
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