- Bitcoin Cash price dropped sharply after failing to clear $260
- The coins’ price is down by 5% after breaking down to $245
- LTC broke below a bullish pattern with support at $252
Bitcoin Cash News Today – the price of Bitcoin Cash declined sharply after the coin failed to clear $260 which is a resistance area. The trading pair is now correcting higher. However, any further upside will be capped at the $245 area. The price of BCH is down by 5% at press time. But this didn’t stop it from breaking $245 which is a support area.
The coin had a break below an important bullish pattern with support at $252 via the 4-hour chart. The Bitcoin Cash price has returned to the bearish zone and is seating below $245 which is a support. The BCH/USD pair will likely continue going lower if it remains below $250. Earlier I’m the week, BCH attempted to clear $258 and $260 which are both resistances.
Bitcoin Cash Found Support at $258 in the Short-term Outlook
BCH/USD formed short-term support at $258. Recently the price initiated a major drop. It broke below the $250 support. It even settled beneath the important $245 support and the 55-day simple moving average via the 4-hour time frame. There was a break beneath the bullish trend line that found support at $252 via the 4-hour chart.
The trading pair even broke $240 and formed a new weekly low close to $231. The coins’ price is currently consolidating and correcting higher above the $235 position. The initial resistance is at $238. It is also near the 23.6% Fib retracement of the recent drop from $258 to $231. The main resistance is forming close to $245. It is near the 50% Fib retracement level of the last drop from $258 to $231.
BCH/USD Must Settle Above $250 to Post a Fresh Rally Upwards
To initiate a strong rise in value, the BCH price must settle above $250 and the 55-day SMA via the 4-hour chart. Conversely, the coins’ price is likely to stay lower after its current correction wave is complete at $245 or $250. Looking at the downside, we will see initial support at the $230 area. Below this position, there’s a risk of a larger drop to $220 in the near-term outlook.
Looking at the hourly chart, we can see BCH trading in the negative area below $245. Hence, there’s a chance of more losses under $230. The MACD for BCH/USD is currently in the bearish area. The RSI for the BCH/USD pair is now well under the 30 level. The digital asset found key support positions at the $230 and $220 levels respectively. Meanwhile, the BCH found important resistance positions at the $245 and $250 levels respectively.