- Bitcoin cash price failed to break the $195 and $198 resistance levels against the US Dollar.
- There is a crucial contracting triangle forming with resistance near $198 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to make the next move either above $198 or below $175 in the near term.
Bitcoin cash price is struggling to clear the $200 hurdle against the US Dollar. BCH/USD is approaching the next break either above $198-200 or towards $165.
Bitcoin Cash Price Analysis
There was a slow and steady rise from the $165 swing low in bitcoin cash price against the US Dollar. The BCH/USD pair traded above the $175 and $180 resistance levels to move into a positive zone. There was even a close above the $175 level and the 100 hourly simple moving average. However, the price struggled to clear the $198-200 resistance, which is a major hurdle for buyers.
A high was formed at $197 and later the price corrected lower. It declined below the 23.6% Fib retracement level of the last wave from the $166 low to $197 high. The price is now approaching a strong support near the $178-180 zone. Moreover, there is a crucial contracting triangle forming with resistance near $198 on the hourly chart of the BCH/USD pair. The triangle support is near the 100 hourly SMA at $176. Besides, the 61.8% Fib retracement level of the last wave from the $166 low to $197 high is at $178. Therefore, the $175-178 area could act as a strong support for buyers in the short term.
Looking at the chart, BCH price seems to be preparing for the next move either above $198 or below $175. Below $175, the price could revisit $165. And, a break above $200 may spark more gains towards $225.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD has moved back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD also declined below the 50 level.
Major Support Level – $175
Major Resistance Level – $198
Author: Aayush Jindal