Bitcoin Cash Analysis: Risk of More Losses Below $170

Bitcoin Cash Analysis: Risk of More Losses Below $170

May 27, 2022

Bitcoin cash price is struggling below $215 against the US Dollar, similar to bitcoin. BCH/USD could start a fresh decline if it stays below $215.

Bitcoin Cash Price Analysis

Bitcoin cash price made a few attempts to gain strength above $220 and $225. However, BCH failed to gain pace and started a fresh decline below the $205 level.

There was a move below the $200 level and the 55 simple moving average (4-hours). The price even traded below the $180 support and formed a low near $172. It is now consolidating losses above the $175 level. On the upside, the price is now facing resistance near the $185 level.

There is also a major bearish trend line forming with resistance near $188 on the 4-hours chart of the BCH/USD pair. The trend line is near the 23.6% Fib retracement level of the recent decline from the $236 swing high to $172 low.

The next major resistance is near the $205 level. It is near the 50% Fib retracement level of the recent decline from the $236 swing high to $172 low. The main hurdle sits near the $215 level. A clear break above $205 and $215 might send the price towards the $240 barrier.

Any more gains above $240 could set the pace for a larger increase. The next major hurdle is near the $260 level. An immediate support on the downside is near the $172 zone.

The next major support is near the $166 level, below which the bears might gain strength. The next target for them may perhaps be near the $150 level.

Bitcoin Cash Price

Looking at the chart, bitcoin cash price is now trading below the $215 zone and the 55 simple moving average (4-hours). Overall, the price might start a decent increase if there is a clear move above the $215 resistance.

Technical indicators

4 hours MACD – The MACD for BCH/USD is slowly losing pace in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now near the 40 level.

Key Support Levels – $172 and $166.

Key Resistance Levels – $205 and $215.

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