Bitcoin Cash (BCH) price is currently holding steady above the key support level of $220 against the US Dollar. This indicates that BCH is looking to make a fresh increase unless there is a significant drop below $220.
Over the past few days, the price of Bitcoin Cash has experienced a steady decline from the resistance zone at $255. It fell below the $240 support level, entering a short-term bearish zone similar to Bitcoin and Ethereum. Additionally, there was a break below a key bullish trend line with support near $238 on the 4-hour chart of the BCH/USD pair.
However, despite these declines, the bulls managed to maintain momentum above the $220 support level. The price found support near the 61.8% Fibonacci retracement level of the upward move from the $203 swing low to the $255 high.
Currently, Bitcoin Cash is trading above both $220 and the 100 simple moving average (4 hours). The immediate resistance level is located around $236, with the next major resistance level near $244. Further gains could potentially drive the price towards the $250 resistance zone.
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Looking at the bigger picture, the next major hurdle for BCH lies around the $262 level. If the price manages to surpass this level, it could potentially initiate a decent increase towards the $280 level or even $288 in the coming days.
On the other hand, if Bitcoin Cash fails to clear the $244 resistance level, it could lead to a fresh decline. The initial support on the downside can be found near $225, with the key support level still holding at $220. This level is likely to attract bullish activity, but if it fails to sustain the support, the price may test the $212 support. Any further losses would then push the price towards the $200 zone in the near term.
Taking a look at the technical indicators, the 4-hour Moving Average Convergence Divergence (MACD) for BCH/USD is showing a loss of momentum in the bullish zone. The 4-hour Relative Strength Index (RSI) is currently below the 50 level, indicating a slight bearish sentiment.
In conclusion, Bitcoin Cash is holding onto the key $220 support level against the US Dollar, which suggests that a fresh increase may be on the horizon. However, traders should keep an eye on the resistance levels at $244 and $262, as a failure to break through these levels could lead to further downside movement. Conversely, a successful breach of these resistance levels could pave the way for BCH to rally towards the $280-$288 range.
