Bitcoin cash price started a downside correction after trading above $235 against the US Dollar. BCH/USD traded below $200 and it is currently consolidating near $150.
Key Talking Points
- Bitcoin cash price declined recently and broke the $200 and $175 supports against the US Dollar.
- BCH is forming a breakout pattern with resistance at $162 on the 4-hours chart (data feed from Bitstamp).
- The price may soon make the next move either above $165 or below $140 in the near term.
Bitcoin Cash Price Analysis
After a monster rally above the $200 level, bitcoin cash price found sellers against the US dollar. BCH tested the $235-240 resistance zone and later started a downside correction. On the other hand, bitcoin, ripple, Ethereum, litecoin and EOS remained nicely supported.
Looking at the chart, the price started a major decline from the $237 swing high. It broke the $200 and $175 support levels to move into a bearish zone. There was even a break below the $170 level and the 100 simple moving average (4-hours).
Moreover, the price declined below the 50% Fibonacci retracement level of the upward move from the $84 low to $237 high. Later, the decline was protected by the $140-142 support zone.
More importantly, the 61.8% Fibonacci retracement level of the upward move from the $84 low to $237 high acted as a support. The price is currently consolidating above the $142 and $150 support levels.
It seems like there a breakout pattern formed with resistance at $162 on the 4-hours chart. A break above the bearish trend line and $165 may push the price towards $175 and $190 in the near term.
On the downside, a break below the $150 and $142 support levels may clear the path for more declines in bitcoin cash price in the near term. The next major support for BCH below $142 is at $120. It represents the 76.4% Fibonacci retracement level of the upward move and the last swing area. Therefore, traders may wait for the next break to catch the next move either above $165 or below $142.
The market data is provided by TradingView.